Residents of Aberdeen and Shire have become the darlings of the HM Revenue and Customs as the average amount of income tax they paid rose highest in all of Scotland, new figures show.
Aberdeen topped the list for growth in taxes as the average worker in Aberdeen paid £6,110 – up 20.8% from 2006/7, a study by accountants Campbell Dallas revealed.
Their rural counterparts in Aberdeenshire came hot on the city’s heels with the second highest rise in average taxes paid in Scotland, up 18.5% to £5,970.
Only the leafy council area of East Renfrewshire had a higher average tax bill in Scotland of £6,340. But the north-east tax payer is set to surpass them as the area, south of Glasgow, saw the average amount of tax per head fall 2.3% in the five years to 2011/12.
Campbell Dallas said that Aberdeen consistently topped polls for quality of life and low unemployment over the same period. The city has a concentration of higher earners due to resurgent oil and gas industry.
Ian Williams, chairman and tax partner at Campbell Dallas, said: “The results are not entirely surprising given the influx of new business in the region. However, it is important we continue to welcome those willing to work and live here and encourage them by putting the necessary infrastructure in place.
“Many local SME businesses are benefitting from the resurgence of the North Sea oil and gas industry. People new to the area have expectations of what their ideal home location should have in place be it schools or leisure facilities, property or road networks. I foresee the recent trends of migration continuing as new developments spring up in both Aberdeen and Aberdeenshire.”
The Orkney Islands came third with an increase of 17.5%. Dundee showed 11%, higher than both Glasgow on 5.6% and Edinburgh on just 1.5%. The average rise in Scotland was 4.3% and in the UK 6.2%. The highest change in the UK was in Cheshire West and Chester at 78.7% and South Buckinghamshire at 39.3%.