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Scottish Budget 2024
Our Tax Manager, Victoria Bishop, explains what yesterday’s Scottish Budget announcements could mean for you and your business.
Scotland’s Deputy First Minister, Shona Robison, presented the Scottish Government’s proposed spending and tax plans for the 2025/26 financial year with a range of new measures. She emphasised throughout her speech that the Government’s primary concern is to eradicate child poverty.
The key points announced were as follows:
Income Tax changes for 2025/26
- There are no changes to the rates of tax, but Ms Robison has extended the lower bands, meaning that more people will be taxable at the lower rates of 19% and 20%.
The Income Tax rates from 6 April 2025 will be as follows:
Band Income Range Rate Starter rate £12,571- £15,397
(was £14,876)19% Basic rate £15,398 – £27,491
(was £26,561)20% Intermediate rate £26,562 – £43,662 21% Higher rate £43,663 – £75,000 42% Advanced rate £75,001 – £125,140 45% Top rate Above £125,140 48% Business premises rates
The small business reliefs will continue, including 40% (100% in the islands) relief for hospitality premises (capped at £110,000 per business).
Land and Buildings Transaction Tax (LBTT)
Whilst the main bands and rates have not changed, the Additional Dwelling Supplement has increased to 8% with immediate effect (from midnight on 4 December 2024). This applies when you buy a second or subsequent property in Scotland and is charged on top of the normal LBTT charge.
Scottish Landfill Tax
The standard rate is increasing to £125.15 per tonne, with the lower rate rising to £4.05 per tonne.
Please give us a call on 01387 270340 if you have any queries about how the above might affect you or your business.
