The Scottish government proposed an overhaul of the income tax rates in its draft Bbudget for 2018-19:

• 
  19% from £11,850 to £13,850 (starter rate)
• 
  20% from £13,850 to £24,000 (basic rate)
• 
  21% from £24,000 to £44,273 (intermediate rate)
• 
  41% from £44,273 to £150,000 (higher rate)
• 
  46% on earnings in excess of £150,000 (top rate)

The personal allowance will rise to £11,850.

Finance secretary Derek Mackay said, as a result of these changes and the increase in the personal allowance, all taxpayers earning up to £33,000 would be protected from any tax rate rise. Those earning more than £33,000 would pay only a proportionate amount more while most (55%) would pay marginally less in 2018-19 than in the rest of the UK.

Cara Heaney, EY partner and head of people advisory services in Scotland, said: ‘Following the surprise introduction of a new Scottish starter rate in the Scottish Budget, Scotland is now the lowest taxed location …