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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

Broadly, a Scottish taxpayer is an individual who is UK resident under the statutory residence test (see E6.102A–E6.102L²) who lives in Scotland³. The definition is discussed in detail in E1.102D. Therefore, Scottish income tax applies to individuals only. Any other persons residing in Scotland and subject to income tax (eg Scottish trustees or Scottish personal representatives) fall within the UK rules, see E1.101.

With effect from 6 April 2018, the Scottish Government split the Scottish basic rate band