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

Scottish Rates

£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%

* assuming the individual is entitled to a full UK personal allowance

* 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%

More info: GOV.SCOT Budget