 How does SRIT work? It will apply to the non-savings, non-dividends income of Scottish taxpayers. The UK government will deduct £10 in the pound from the basic, higher and additional rates of income tax for Scottish taxpayers. The Scottish Parliament will then be able to set SRIT equally across the three tax bans. If it leaves SRIT at 10 pence, income tax would be the same in Scotland as the rest of the UK. If it sets SRIT at zero, income tax would be 10 percentage points lower for people in Scotland. For basic rate taxpayers, this would decrease income tax by 50%. Under current income tax rates, it can also set SRIT as high as 65%. HMRC will continue to collect all income tax and revenues will go to the Treasury who will then transfer SRIT receipts to the Scottish government. Therefore, SRIT alongside LBTT and landfill tax will go towards the Scottish budget. To reflect this loss of revenue by the Treasury, a deduction is made to the block grant. To find out more about Scotland's public finances and even set SRIT yourself, go to scottish.parliament.uk forward slash scottish-government-budget.