Scottish Budget

Minister for Public Finance and Digital Economy, Kate Forbes, delivered the 2020/21 Scottish Draft Budget on Thursday 6 February 2020, setting out the Scottish Government's financial and tax plans.

The current Scottish income tax rates and bands for 2019/20 and the proposed rates and bands for 2020/21 on non-savings and non-dividend income are as follows:

Scottish Bands 2019/20 Scottish Bands 2020/21 Band name Rate
£12,501* - £14,549 £12,501* - £14,585 Starter 19%
£14,550 - £24,944 £14,586 - £25,158 Scottish Basic 20%
£24,945 - £43,430 £25,159 - £43,430 Intermediate 21%
£43,431 - £150,000** £43,431 - £150,000** Higher 41%
Above £150,000** Above £150,000** Top 46%

* assumes individuals are in receipt of the Standard UK Personal Allowance.

** the personal allowance will be reduced if an individual's adjusted net income is above £100,000. The allowance is reduced by £1 for every £2 of income over £100,000.

In the 2018 Autumn Budget, the UK Government announced that the UK-wide personal allowance would be frozen at its current level of £12,500 in 2020/21. The UK higher rate tax point for 2020/21 is also expected to be frozen at the 2019/20 amount of £50,000 (for those entitled to the full UK personal allowance) and the tax rates for non-savings and non-dividend income are expected to be maintained at 20%, 40% and 45% respectively. The additional rate of 45% is payable on income over £150,000.

Land and Buildings Transaction Tax change to non-residential rates and bands

The Government announced the introduction of a new 2% band for non-residential leases which will come into effect for contracts entered into on or after 7 February 2020. The rates and bands for non-residential LBTT transactions are as follows:

Non-residential transactions (purchase price) Rate Non-residential leases (net present value of rent payable) Rate
Up to £150,000 0% Up to £150,000 0%
£150,001 to £250,000 1% £150,001 to £2 million 1%
Over £250,000 5% Over £2 million 2%

Internet link: GOV.SCOT Budget

Home | Contact us | Site map | Accessibility | Disclaimer | Privacy Policy | Help |

© 2020 Honey Barrett Limited. All rights reserved. We use cookies on this website, you can find more information about cookies here.

Honey Barrett Limited, 53 Gildredge Road, Eastbourne, East Sussex BN21 4SF
Bexhill Office : 48 St Leonards Road, Bexhill-on-Sea, East Sussex TN40 1JB
Wadhurst Office : Pharmacy Chambers, High Street, Wadhurst, East Sussex TN5 6AP

The Registered office is: Honey Barrett Limited, 53 Gildredge Road, Eastbourne, East Sussex BN21 4SF
Company registered in England & Wales, number 06137832
The ICAEW audit registration number for Honey Barrett (Audit) Ltd is C005419803.
VAT No. 725 2398 29