Scotland’s Deputy First Minister and Finance Secretary, Shona Robison delivered her first Budget statement to the Scottish parliament on 19 December 2023.
The Finance Secretary said that the ‘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’. The measures announced for next year are expected to raise an additional £1.5 billion in Income Tax revenue, as compared to UK Government policy.
One of the measures announced to help tackle the constrained financial position was a new tax band called the advanced rate band which will apply a 45% tax rate on annual income between £75,000 and £125,140. In addition, 1p was added to the top rate of tax and the starter and basic rate bands were increased in line with inflation. There were no changes to the Starter, Basic, Intermediate and Higher tax rates and the Higher rate threshold will be maintained 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 |
The standard personal allowance remains frozen at £12,570.
There were no changes to the land and buildings transaction tax (LBTT) rates for residential or non-residential property. The standard rate of Scottish landfill tax will rise to £103.70 per tonne and the lower rate to £3.30 per tonne from April 2024 maintaining alignment with the corresponding taxes in the rest of the UK.
The Budget measures are subject to final approval by the Scottish parliament.
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