Mackay says Westminster can lift budget tax blow for married Scots

● Tax changes would mean £260 loss ● UK ministers to consider situation

Finance secretary Derek Mackay has called for Westminster action to ensure hundreds of thousands of married Scots don’t lose out on a £260 tax break as a result of his budget.

The SNP minister told MSPS a “minor technical change” is needed from UK ministers to avoid the marriage allowance being denied to many couples north of the Border when his overhaul of the Scots tax system is implemented this year.

Workers earning more than £24,000 will pay a new 21p “intermediate” rate, under the SNP’S plans, meaning they lose out on the allowance which applies to basic rate payers. Couples on the new 19p starter rate will also lose out.

Instead only those on the new “streamlined” basic rate in Scotland retain the tax break, in line with the exact wording of the legislation covering the marriage allowance.

Mr Mackay told Holyrood’s finance committee yesterday UK ministers could rectify the “anomaly”.

“My view is that married Scots should continue to have that entitlement,” he said

“It’s then back to the Westminster government to make that change or not. They would not lose out by making the change. For them it would be continuity.”

Mr Mackay insisted it was “not a reason” to stop Scotland from making different decisions on tax policy.

“At maximum of £260 per couple in relief for those affected and could be resolved in advance of the new financial year with a minor technical change if the UK government wishes to do it.”

The marriage allowance applies to basic rate taxpayers if their spouse is out of work or in a low-income job.

The tax changes in Scotland mean that the current 20p basic rate, applying to those making between about £11,501 and £43,000 will instead be covered by three rates.

There will be a new “starter rate” for those making, £11,850 to £13,850, while the new 20p basic rate applies from £13,850 to £24,000.

There will also be a new 21p intermediate rate for those earning between £24,000 to £44,273.

Scottish Government official Aidan Grisewood said talks are under way with Westminster to resolve the impasse, which would only need a “minor legislative change”.

A UK government spokesman said it is up to Scottish ministers “how they use” new tax powers.

“We will carefully consider any implications of recent changes for the marriage allowance and set out next steps in due course.”