On 14 December 2017 Scotland’s Finance Secretary announced the draft Scottish budget for 2018-19. The main points relating to taxation are as follows:
- The basic rate of income tax has been frozen at 20%, but a new intermediate rate of 21% will be established for those earning between GBP 24,000 and GBP 44,290, Also the higher and additional rate of tax will be increased by 1% to 41% and 46%, respectively.
- A new Scottish starter rate of income tax will be introduced apply tax on earnings between GBP 11,850 and GBP13,850 at a reduced rate of 19%.
- The Land and Buildings Transaction Tax (formerly stamp duty) will not apply for first-time buyers for residential properties under GBP 175,000.
From 6 April 2017 the Scotland Act 2016 gave the Scottish parliament the power to set its own income tax rates and to set income tax thresholds. The Scottish income tax rates apply to individuals living in Scotland. Scotland can also set its own rates of Air Passenger Duty and Aggregates Levy. The Land and Buildings Tax was introduced in Scotland in April 2015, replacing Stamp Duty.
