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Since 6 April 2017, the Scottish Government has had the power to vary the rates of income tax for the non-savings non-dividend income of Scottish taxpayers (usually referred to as 'non-savings income' in practice). It can also create new tax bands. It does not have the power to set the level of the personal allowance, set different rates for different types of non-savings income (eg different rates which apply to self-employment income only, say), or alter/create/abolish income tax reliefs. These remain reserved by the UK Government.¹

The Scottish income tax rates and bands and the income to which it applies are discussed in detail in E1.102C. The implications of the Scottish income tax rates and bands for other areas of the tax system is covered in E1.102E. The definition of Scottish taxpayer is discussed below.

It is important to appreciate that only individuals can be Scottish taxpayers for the purposes of Scottish income tax. Any other persons residing in Scotland and subject to income tax (eg Scottish trustees or Scottish