The draft Scottish Budget for 2019/20 was announced by Scottish Finance secretary Derek MacKay on 12 December 2018 as planned.

Scottish income tax has applied since April 2016, and is payable by Scottish taxpayers  on non savings income. This followed the introduction, in April 2015, of Land and Buildings Transaction Tax (LBTT) which replaced Stamp Duty Land tax in Scotland.

Income tax

The Finance secretary announced that there would be no change to Scottish income tax rates for 2019/20.

As for 2018/19 Scottish taxpayers will remain eligible for the standard UK personal allowance which for 2019/20 will be £12,500.

Changes were proposed to income tax bands in line with inflation.

The new bands proposed are:




Band of income


Personal allowance (tax -free band)


 Up to 12,500

Starter rate



Basic rate



Intermediate rate



Higher rate



Additional rate




Land and buildings transaction tax (LBTT)

Additional dwellings supplement:

As with stamp duty land tax, Scotland imposes a LBTT surcharge on the purchase of additional dwellings, which is currently set at 3%.

From 25 January 2019 is is proposed that this will increase to 4%. For some properties depending on their purchase price, this will make buying a second residential property in Scotland more expensive than if it were purchased in England or Northern Ireland.

Non residential rates:

Changes are proposed to the rates for non-residential property with effect from 25 January 2019 as follows:

Non-residential property transactions:

Up to £150,000 0%   
£150,000 - £250,000    1% 
Above £250,000 5%


Links to our guides:

Land and Buildings Transaction tax (LBTT)
A guide to the Scottish equivalent of stamp duty land tax, what the rates are and what reliefs apply.

Scottish Income tax: Am I a Scottish taxpayer?
This guide explains what makes you a Scottish taxpayer and what that means.


Scottish Budget 2019/20