Scottish Budget 2019/20

20th December 2018 | Posted in: Business Tax, Company News, Government Announcements, Personal Tax, Property Investment

Derek Mackay MSP, the Scottish Cabinet Secretary for Finance delivered his draft Scottish Budget for 2019/20 0n 12 December 2018.  The main budget proposals are  as follows:-

Personal Tax

  • There are no changes to the tax rates introduced in 2018/19
  • There are changes to the 19%, 20% and 21% tax bands

The following table summarises these proposed changes compared with the rest of the UK:-

Gross income (£) Scotland

Scottish Income Tax Rate (SIRIT) (%) Gross income (£) Rest of UK Rest of the UK Income Tax Rate (%)
12,500 – 14,549 19 – Starter N/A N/A
14,549 – 24,944 20 – Basic 12,500 – 50,000 20 – Basic
24,944 – 43,430 21 – Intermediate N/A N/A
43,430 – 150,000 41 – Higher 50,000 – 150,000 40 – Higher
Above 150,000 46 – Top 150,000 + 45 – Top

As a result Scottish taxpayers earning over £27,000 will pay more tax than taxpayers in the rest of the UK.

Property

  • The Additional Dwelling Supplement will increase from 3% to 4%
  • The Land & Buildings Transaction Tax (LBTT) rates and bands for non residential transactions will be revised

The proposed changes to the  LBTT rates and bands for non residential land and property, to take effect from 25 January 2019,  are as follows:-

Purchase Price LBTT rate
Up to £150,000 0%
£150,000 to £250,000 1%
Above £250,000  5%

 

This will mean there will be an LBTT saving on the purchase of non residential land and property with a value of up to £350,000 and that LBTT will increase on the purchase of non residential land and property at a value in excess of £350,000.

If you wish to discuss any of the above in more detail, please do not hesitate to contact us.

If you feel we could help you and would like to discuss any of the above, please contact Anne Melville BA CA on 0131 317 7377 or email to anne.melville@jsca.co.uk.
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