Rush of high-earning Scots set to go south as earnings tax skyrockets | UK | News | EUROtoday

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The new tax threshold for prime earners in Scotland, which sees these incomes greater than £75,000 paying a charge of 45 %, may have implications on residing decisions.

Taking to X, previously often called Twitter, consumer @chamaerion, mentioned the brand new tax band would “unleash a rush of wealthy Scottish people to England”.

TV presenter and journalist, Andrew Neil commented: “Except that a large percentage of those earning over £75,000 in Scotland work for the public sector. Or depend on public sector fees (eg lawyers, architects, accountants etc). They won’t find it so easy to relocate South. But investing in Berwick property (an hour’s commute from Edinburgh) looks a good bet.”

The remark made by the 70-year-old presenter sparked a web based debate.

User, @AngasAnnal66, responded: “These high personal taxes will cause Scotland to struggle to attract high earners and entrepreneurs from abroad or from other parts of England. Why start a business in Scotland when you can keep more of your own money in England?”

X consumer, @spenderman, additionally shared his ideas: “Professional people like Doctors probably won’t move, but will reduce their working hours, put more money into pensions then retire earlier, starving Scotland of their skills and expertise.”

Andrew Neil beforehand posted: “…There are so few high earners in Scotland it might bring in only an extra £60m or so, esp as taxpayers change behaviour/pension planning to avoid 47 percent.”

The determination was introduced by Deputy First Minister and Finance Secretary, Shona Robison, as she unveiled the Scottish finances in an announcement at Holyrood.

Scotland already had the best tax band within the UK at 47 % for folks incomes greater than £125,000. This may also rise by 1 % subsequent 12 months to 48 %.

The new charge takes the variety of earnings tax bands in Scotland to 6, whereas the remainder of the UK has three.

The Fraser of Allander Institute (FAI) beforehand mentioned the brand new band would solely elevate round £60m for spending.

Meanwhile, the Scottish Fiscal Commission estimates that total earnings tax will elevate £18.8bn in 2024-2025.

The modifications have been designed to assist plug a £1.5bn black gap within the nation’s funds.

Starter (19%): £12,571 – £14,876
Basic (20%): £14,877 – £26,561
• Intermediate (21%): £26,562 – £43,662
Higher (42%): £43,663 – £75,000
Advanced (45%): £75,001 – £125,140
Top (48%): > £125,140