I live in Scotland, will my pension be affected by the Scottish rate of Income Tax?

If you live in Scotland, HMRC should already have written to you if they think the Scottish rate of Income Tax applies to you. Your tax code will also begin with the letter ‘S’ to show you’re a Scottish taxpayer and have your earnings or pension income taxed under ‘pay as you earn’ (PAYE).

If you’re classed as a Scottish tax payer, you’ll pay different tax rates to that of the rest of the United Kingdom. For more information please visit www.gov.uk/scottish-rate-income-tax. For details on how these different tax rates will affect the tax relief you receive on your pension contributions, see here.

It’s important that you let HMRC know if you move to or from Scotland so that they can assess your Scottish taxpayer status and make sure you have the right tax code.


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