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Parliamentary debates and questions

S5W-18376: Bill Bowman (North East Scotland)

Scottish Conservative and Unionist Party

Date lodged: 22 August 2018

To ask the Scottish Government what its position is on whether the reported reduction in the savings ratio will make it more likely that people on the intermediate income tax band will spend the 1% relief that they receive in their take-home pay from their pension payments instead of it automatically being saved in their pension pots.

Answered by: Derek Mackay 13 September 2018

The Scottish Government supports pension saving. That is why the Scottish Government negotiated with the UK Government to ensure that in the current tax year relief at source would continue to be available to Scottish income taxpayers on exactly the same basis as is the case elsewhere in the UK.

While the operation of relief at source remains reserved and therefore a matter for HMRC and the UK Government, income taxpayers in Scotland who fall into the intermediate band and are contributing to a pension will have their pension contributions grossed up so that the 20% basic rate tax paid on the contribution is also paid into their pension by HMRC. They can then claim any additional relief they are due back from HMRC.