Scottish taxpayers don’t pay higher CGT

Scottish taxpayers don’t pay higher CGT

Fri 09 Mar 2018

The announcement of a different higher rate threshold in the Scottish rate of income tax (SRIT) for 2018/19 has caused people to ask what effect this has on the rates of capital gains tax (CGT) payable by Scottish taxpayers.
The answer is “none”: the effect of  section 4 of the Taxation of Chargeable Gains Act 1992 is that a Scottish taxpayer’s CGT rates are to be calculated by reference to the rates of income tax she would be subject to if she were not a Scottish taxpayer.
If the Scottish income tax rate bands applied Scottish higher rate and additional rate taxpayers would pay more CGT than their English, Welsh and Northern Irish counterparts.


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