THOUSANDS more taxpayers moved to Scotland than left each year in the period after income tax rates were put up north of the Border, new research has found.
A study by HMRC for the Scottish Government found a steady increase in net migration of taxpayers in the five years since Scottish Income Tax was introduced in 2017-18.
On average during that period, almost 4200 more taxpayers moved to Scotland than left each year, the study found.
In 2021-22 – the latest year of available data – £200 million in extra taxable income was brought into Scotland, with more higher and top rate taxpayers moving to Scotland than leaving.
The HMRC report said: “Beyond year ending 2017, the first year where income tax was (partially) devolved, net migration to Scotland increased on a yearly basis, to around 8,000 individuals in year ending 2022.
“This deviation from the generally stable trend reflects decreasing numbers of taxpayers migrating from Scotland to rUK combined with an increase in migration to Scotland in year ending 2022.”
Provisional findings were shared with ministers ahead of setting the 2024-25 Scottish Budget, which saw the creation of a new advanced rate of 45% for those earning between £75,000 and £125,140.
It comes despite warnings wealthier Scots may leave the country to escape higher rates of income tax.
READ MORE: Scottish tax rises 'somewhat offset' by National Insurance cut
Finance Secretary Shona Robison (below) welcomed the findings of the study, saying it was “yet more proof that Scotland is an attractive place for people to live and work”.
She added: “We know people base the decision on where to live on a range of factors, and by coming to Scotland they have access to a range of services and benefits not available elsewhere in the UK, including free tuition and prescriptions.
"Scotland has the most generous childcare package for three and four year olds, and council tax is lower here than in England.
“This social contract with the people of Scotland is funded in part by our progressive income tax system.
"Indeed, in 2021-22 some £200m in taxable income was brought here as a result of inward migration in a single year, increasing economic activity while helping fund vital public services like our NHS and our efforts to tackle child poverty.”
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