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Parliamentary debates and questions

S5W-18374: Bill Bowman (North East Scotland)

Scottish Conservative and Unionist Party

Date lodged: 22 August 2018

To ask the Scottish Government what steps it has taken to ensure that people who are on the intermediate income tax band do not accidentally spend 1% of their pension payments relief.

Answered by: Derek Mackay 13 September 2018

The operation of relief at source, as with all income tax reliefs remains reserved and therefore a matter for HMRC and the UK Government. Income taxpayers in Scotland who are paying into a pension are treated in exactly the same way as income taxpayers in the rest of the UK. Their pension contributions are grossed up so that the 20% basic rate tax paid on the contribution is also paid into their pension by HMRC. If the taxpayers marginal rate of income tax is higher than 20% they can claim back the additional relief they are due from HMRC.