Today in the Scottish Parliament, Finance Secretary, Derek Mackay, announced the Scottish Budget for the coming year.
There were no real surprises and no significant changes, however, for the first time there will be a divergence in UK income tax thresholds, with the Scottish higher rate of 40% (as expected) now coming into force at £43,430 as opposed to the rUK’s £45,000. In reality, this means a Scottish resident higher rate taxpayer will pay £314 more annually than their rUK equivalent in 2017/18. The basic rate is frozen. There is now a real requirement for taxpayers to be aware of residency rules and in which part of the UK they primarily reside.
Notwithstanding some evidence of the existence of an impact on the property market deriving from the introduction of Land and Buildings Transaction Tax (LBTT) there was no change announced to this.
Given the numerical composition of the Scottish Parliament, this draft Budget is now subject to negotiations among political parties in order that it can gain majority support.