Finance Secretary uses Scottish Budget to outline tax changes

Derek Mackay, Finance Secretary for Scotland, has delivered Scotland’s draft Budget, outlining a range of changes to both taxation and finance.Marking the first Scottish Budget since Holyrood gained a series of new tax powers from Westminster, Mr Mackay revealed that the basic rate of income tax will be frozen, whilst the 40% higher rate of income tax will start at £43,430.This differentiates the Scottish rate from Britain’s higher rate: in the rest of the UK, the higher rate threshold will rise to £45,000 from 6 April 2017.Commenting on the change, he stated: ‘This government is committed to a principles-based approach to taxation, particularly that tax should be proportionate to the ability to pay.’