Scottish Budget 2025/26

Shona Robison, Cabinet Secretary for Finance and Local Government, delivered the Scottish Budget today for the 2025/26 fiscal year. The changes for personal tax purposes, which are mostly effective from 6 April 2025 can be broadly summarised as follows:

Scottish Income Tax

• The thresholds applied to the starter and basic rate will increase by 3.5% from April 2025.
• The starter band will apply between £12,571 and £15,397. The basic band will apply between £15,398 to £27,491.
• As a consequence, the intermediate rate will now start at £27,492. All other rates are maintained - higher rate tax will continue to be payable on taxable income above £43,662.

Land and Buildings Transactions

• With effect from tomorrow, 5th December 2024, the rates applicable to Additional Dwelling Supplement will increase from 6% to 8%. The current rates will apply to transactions where missives were signed on or before close of business today, where completion takes place later.
• All other rates and bandings are to remain the same.
• No changes to multiple dwellings relief were announced.
• A review of the Land and Buildings Transaction tax legislation will take place, commencing in Spring 2025. This is to ensure the policy intent of this devolved tax is being met.

Scottish Landfill Tax

• The Scottish landfill tax rates will increase in line with announcements made by the UK Government. From 1 April 2025, there will be a standard rate of £126.15 per tonne and a lower rate of £4.05 per tonne.

Next Steps

Please get in touch with your contact at Turcan Connell or Kenny MacDonald (Head of Tax Services) to discuss how these changes may impact you.