Scottish Budget 2026/27

Shona Robison, Cabinet Secretary for Finance and Local Government, delivered the Scottish Budget today for the 2026/27 fiscal year. The changes for personal tax purposes, which are mostly effective from 6 April 2026 can be broadly summarised as follows:

Income Tax 

• The thresholds applied to the starter and basic rate will increase by 7.4% from April 2026.
• The starter band will therefore apply between £12,571 and £16,537. The basic band will apply between £16,538 to £29,526.
• As a consequence, the intermediate rate will now start at £29,527. All other rates and thresholds are maintained.

Council Tax

• With effect from 1 April 2028, the Scottish Government will introduce two new high value Council Tax bands for the most expensive properties. These bands are:
  • Band I – for properties valued between £1m and £2m
  • Band J – for properties valued above £2m
• The new bands will be based on up to date values, with all other homes remaining on the existing Council Tax valuation framework.
• There is no information at present as to the rates to be applied to the new bands.

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.