Scottish Budget: Introduction
The Scottish Government Budget 2024/25 was recently unveiled by Shona Robison.
In this short article, we summarise some of the changes that are, to be honest, pretty bold
The "Advanced" Tax Rate
In a move that was more foreshadowed than a plot twist in a detective novel, a new Scottish income tax rate has emerged.
It targets income between £75,001 and £125,140 at a 45% rate. Named "Advanced" – because, just like in school, "Advanced" here means "Higher."
Top Rate Takes a Tiny Jump
Catching us slightly off guard, the Scottish Top rate of tax has nudged up a notch to 48%. It's edging ever closer to the half-century mark – that's 50% for those who skipped math class.
Reminder: these rates are exclusively for Scottish taxpayers, focusing on income from jobs, self-employment, or property.
A Sextet of Tax Rates
Scotland says "why stop at three?" and introduces a sixth income tax rate, making it a half-dozen compared to the rest of the UK's trio.
Scottish taxpayers, brace yourselves for a marginal rate of 67.5% on incomes between £100,000 and £125,140.
Inflation-Proofing the Starter and Basic Bands
Inflation's not just for balloon animals. The Starter and Scottish Basic rate bands are inflating by 6.7%. The Starter band now encompasses income up to £14,876, and the Basic band stretches from £14,877 to £26,561.
Council Tax: Freeze Frame!
The Council Tax freeze is more solid than a Scotsman's resolve. It's not only confirmed but also fully funded, giving councils a financial boost equivalent to a 5% tax increase.
Non-Domestic Rates: Frozen in Time
The Basic Property Rate (poundage) is frozen faster at 49.8p per £1 of rateable value, mirroring the UK Government's recent move.
Hospitality Sector: A Mixed Bag
Despite numerous pleas, the wider hospitality sector won't see an extension in current reliefs.
However, island-based hospitality gets a 100% break, capped at £110,000.
The Scottish Government is also cooking up some targeted solutions and a new valuation method for the sector.
LBTT and ADS: No News is Good News
In the Land and Buildings Transaction Tax (LBTT) and Additional Dwelling Supplement (ADS) world, it's status quo for both residential and non-residential dealings.
Landfill Tax: Up and Up We Go
In sync with UK landfill tax increases, from April 2024, the Scottish Landfill Tax will see the standard rate climb to £103.70/tonne and the lower rate to £3.30/tonne.
Talk about trashy tax rates going up!
A New Scottish Aggregates Tax on the Horizon
The Scottish Aggregates Tax (SAT) is set to make its grand debut in April 2026, replacing the UK-wide aggregates levy.
This new kid on the block was introduced to the Scottish Parliament back in November 2023.
Scottish Budget - Final thoughts
If you have any queries about this article on the Scottish Budget, then please do get in touch