THE income tax gap between Scotland and England will officially widen today, with higher earners paying £1500 more than their counterparts in England and Wales.

More than half of Scottish taxpayers will pay £20 less than their English peers in 2019/20.

However the 45 per cent earning of Scots over £27,000 will pay more.

The main difference in Scotland will affect higher rate taxpayers, with the threshold frozen in Scotland for a second year at £43,430, while it rises to £50,000 south of the border.

It means those earning over £50,000 in Scotland will pay £1544 more than their English counterparts, while those on £100,000 will pay an additional £2044.

Because national insurance rates are aligned with the English higher rate threshold, Scots earning between £43,430 and £50,000 will pay an effective marginal tax rate of 53 per cent, compared to 42 per cent across the rest of the UK.

Despite the gap with England, most Scots taxpayers will still pay less than they did in 2018/19, because Chancellor Philip Hammond raised the personal allowance to £12,500.

The Tories said the tax gap could damage the economy by deterring investors and causing high earners to relocate. Tax experts also warned the cross-border differences were throwing up more anomalies.

Tory MSP Murdo Fraser said: “Anyone earning over £27,000 in Scotland will now be paying more than people elsewhere in the UK thanks to decisions by the SNP government.

“There is now a real fear that the growing tax gap between Scotland and the rest of the UK will damage the Scottish economy.

“How is slapping workers with a Scottish surcharge going to help attract skilled workers to come to Scotland?”

The Chartered Institute of Taxation advised Scots to be aware of the “practical realities” of income tax divergence, including reduced eligibility for Marriage Allowance.

In Scotland, it will only be available to those earning below £43,430, compared with £50,000 across the rest of the UK.

Alexander Garden, chair of the Institute’s Scottish Technical Committee, said: “These changes aren’t new, but they are likely to increase in prominence as the tax systems on either side of the border continue on their divergent paths.

“The interaction between income tax and National Insurance has been well-documented, but the widening gap between the Scottish and UK higher rate thresholds is likely to push more taxpayers into this bracket in the year ahead.”

Finance Secretary Derek Mackay said: “Most Scottish taxpayers will pay less income tax next year than if they lived elsewhere in the UK.

“Scottish taxpayers who fall into the starter, basic and intermediate rates will be eligible for marriage allowance on the same basis as elsewhere in the UK.

“National Insurance remains reserved to Westminster and we urge the UK Government to take into consideration the differing tax rates in Scotland. Overall, the wide range of free to access public services available in Scotland ensures the best deal for Scottish taxpayers.”