Scotland’s Deputy First Minister and Finance Secretary, Shona Robison delivered her first Budget statement to the Scottish parliament. The statement on 19 December 2023.
The Finance Secretary stated the following:
‘Managing the cumulative impacts of the UK Government’s disastrous Autumn Statement, high inflation and ongoing economic damage from Brexit means we have had to make difficult choices and prioritise support for those who need it the most’.
Measures for 2024 are expected to raise an additional £1.5 billion in Income Tax Revenue. In contrast to UK government policy.
To address the constrained financial position, a new tax band, the advanced rate band, was therefore introduced. It imposes a 45% tax rate on annual income ranging from £75,000 to £125,140.Additionally, the top tax rate saw a 1p increase, while starter and basic rate bands were adjusted to match inflation. The Starter, Basic, Intermediate, and Higher tax rates remain unchanged, and the Higher rate threshold stays at £43,662.
The proposed Scottish rates and bands for 2024-25 are as follows:
| Starter rate – 19% | £12,571 – £14,876 |
| Basic rate – 20% | £14,877 – £26,561 |
| Intermediate rate – 21% | £26,562 – £43,662 |
| Higher rate – 42% | £43,663 – £75,000 |
| Advanced rate – 45% | £75,001 – £125,140 |
| Top rate – 48% | Above £125,140 |
However, the standard personal allowance remains frozen at £12,570.
The government made no changes to the land and buildings transaction tax (LBTT) rates for residential or non-residential property. From April 2024, the standard rate of Scottish landfill tax will increase to £103.70 per tonne. Additionally, the lower rate will rise to £3.30 per tonne, aligning with the other UK corresponding taxes.
The Budget measures are subject to final approval by the Scottish parliament.
