Scottish And Welsh Taxpayers Flashcards
(19 cards)
What do Welsh taxpayers pay on their non-savings income?
Welsh rates of income tax
For the tax year 2023/24, the calculation is the same as for other non-Scottish taxpayers.
What is the starter rate for Scottish taxpayers in 2024/25?
19% on the first £2,306
This is part of the Scottish income tax rates for non-savings income.
What is the basic rate for Scottish taxpayers in 2024/25?
20% on the next £11,685
This rate applies after the starter rate.
What is the intermediate rate for Scottish taxpayers in 2024/25?
21% on the next £17,101
This rate follows the basic rate.
What is the higher rate for Scottish taxpayers in 2024/25?
42% on the next £31,338
This rate is applied after the intermediate rate.
What is the advanced rate for Scottish taxpayers in 2024/25?
45% on the next £62,710
This rate is applied after the higher rate.
What is the top rate for Scottish taxpayers in 2024/25?
48% on the rest
This applies to income exceeding the advanced rate threshold.
How are savings income and dividend income taxed for Scottish taxpayers?
Taxed at the same rates as all other UK taxpayers
Savings income and dividends are calculated using non-Scottish tax bands.
What allowance is available for Scottish taxpayers paying tax at the intermediate rate?
Marriage allowance
This allows for a transfer of personal allowance between spouses.
How are Gift Aid donations treated for Scottish taxpayers?
Paid net of 20% tax and extend tax limits
They extend the Scottish basic, intermediate, higher, and advanced rate limits (but not the starter rate limit) by the amount of the gross donation.
Fill in the blank: Welsh taxpayers pay _______ on their non-savings income.
Welsh rates of income tax
True or False: Scottish taxpayers pay tax on savings income at different rates than other UK taxpayers.
False
Scottish taxpayers use the same savings rates as other UK taxpayers.
What is required for an individual to be considered a UK resident for tax purposes?
Must be UK resident for tax purposes
This is a prerequisite for determining tax obligations.
What determines if a person is a Scottish taxpayer?
Will be a Scottish taxpayer if:
* ‘close connection’ to Scotland; or
* spend days in Scotland as elsewhere in the UK
The determination of taxpayer status is crucial for tax liabilities.
What constitutes a ‘close connection’ to Scotland?
Close connection to Scotland includes:
* have only a single place of residence, which is in Scotland; or
* main place of residence is in Scotland
This concept is essential for determining tax residency.
What is considered a ‘place of residence’?
Place of residence = home, which can be:
* any building
* vehicle
* vessel
* structure
*does not have to be owned
*not commercially let property
*not holiday home/investment
This broad definition encompasses various types of living arrangements.
Fill in the blank: An individual will be a Scottish taxpayer if they have a ‘_______’ to Scotland.
‘close connection’
Understanding this term is vital for tax classification.
True or False: An individual can be a Scottish taxpayer without a close connection to Scotland if they spend equal days in Scotland and elsewhere in the UK.
True
This highlights the importance of physical presence in determining tax status.
What is the significance of having a single place of residence in Scotland?
It establishes a ‘close connection’ to Scotland, impacting tax residency status
This is a key factor in tax law regarding Scottish taxpayers.
