Key facts
- Higher earners in Scotland could save over £46,000 in income tax over five years by moving to England.
- The potential savings are achieved by relocating to England and commuting.
- Scotland's top income tax rate is 48%.
- England's top income tax rate is 45%.
- The analysis was conducted by Rathbones.
- The savings are for higher earners.
Individuals with higher incomes residing in Scotland could potentially save more than £46,000 in income tax over a five-year period by relocating to England and maintaining their Scottish employment through commuting. This financial advantage is primarily due to the difference in top income tax rates between the two nations. Scotland imposes a top income tax rate of 48%, whereas England's equivalent rate stands at 45%. The analysis, performed by the wealth management firm Rathbones, suggests that this disparity in taxation could offer a substantial financial benefit to those who choose to change their tax residency. The strategy involves moving to England, thereby becoming subject to English tax laws, while continuing to work in Scotland and commuting across the border. This approach allows individuals to benefit from the lower tax rates in England while still earning income from Scottish sources. The potential savings are calculated over a five-year timeframe, indicating a long-term financial consideration for high earners.