Scottish Finance Secretary Kate Forbes announced the draft Budget for 2021-22 on 28 January 2021.
Scottish Income Tax has applied since April 2016 and is payable by Scottish taxpayers on non-savings, non-dividend income only. This followed the 2015 introduction of Land and Buildings Transaction Tax (LBTT) which replaced Stamp Duty Land tax in Scotland.
Income Tax
From 6 April 2021:
- No changes to Income Tax rates.
- The starter and basic rate bands, as well as the higher rate threshold, will increase by CPI inflation (0.5%).
- The top rate threshold remains frozen at £150,000.
The proposed new bands (assuming individuals are in receipt of the standard UK personal allowance) from 2021-22 are:
|
Rate |
% |
Band of income (£) |
|
Starter rate |
19 |
12,570 - 14,667 |
|
Basic rate |
20 |
14,667 - 25,296 |
|
Intermediate rate |
21 |
25,296 - 43,662 |
|
Higher rate |
41 |
43,662 - 150,000 |
|
Top rate |
46 |
150,000 + |
Land and Buildings Transaction Tax (LBTT)
- Rates of LBTT will remain unchanged for 2021-22.
- As previously planned, the ceiling of the nil rate band for residential LBTT will return to £145,000 on 1 April 2021.
- The Additional Dwelling Supplement (ADS) will remain at 4%. The Scottish Government will consult on a number of matters in respect of ADS early in the next Scottish Parliament.
Scottish Landfill Tax (SLT)
- From 1 April 2021, the standard rate of SLT will increase to £96.70 per tonne and the lower rate of SLT will increase to £3.10 per tonne. These increases will match Landfill Tax charges across the rest of the UK.
Non-domestic rates
- The Basic Property Rate 'poundage' will reduce to 49 pence on 1 April 2021.
- The Scottish Government committed to extending the 100% business rate relief for retail, hospitality and leisure businesses for three months from 1 April 2021.
Useful guides on this topic
Scottish Income Tax: Am I a Scottish taxpayer?
Who does the Scottish Income Tax apply to? Am I resident in Scotland? What constitutes a residence and the 'main' residence?
Scottish Income Tax
What is Scottish Income Tax?
Scottish Income Tax Rates
What is the Scottish rate of Income Tax? What is the rate of Scottish Tax?
Scottish LBTT Rates
What are the Land and Buildings Transaction Tax (LBTT) rates?
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