Increases to the basic and intermediate tax thresholds mean that Scottish taxpayers will pay up to £14.51 less income tax in the coming tax year than in 2024/25.

Scottish taxpayers earning more than £30,318 will pay more income tax than a taxpayer in the rest of the UK with the same earnings, up from £28,867 in 2024/25.

Conversely, the 19p starter rate of tax means that someone with earnings under £30,318 in Glasgow would pay up to £28.27 a year (around 54p a week) less than someone in Manchester or Cardiff.

The freezing of the UK-wide personal allowance, together with Scottish decisions to freeze the higher, advanced and top rate thresholds, means fiscal drag is likely to bring more Scottish taxpayers into these higher rates of tax as earnings rise.

Lindsay Scott, CIOT technical officer, said: “December’s budget may have brought the tax increases of recent budgets to an end, but their effects remain.

“Even with a largely standstill income tax policy, the decisions of previous years mean that the Scottish income tax regime will continue to be slightly more generous to those earning less than £30,318, and increasingly less so for everyone else.

“And there will be an ever so slight reduction for all Scottish taxpayers relative to the year just ending of up to £14.51 due to the increases to the basic and intermediate thresholds.”