Minister for Public Finance and Digital Economy, Kate Forbes, delivered the 2020/21 Scottish Draft Budget on Thursday 6 February 2020, setting out the Scottish Government's financial and tax plans.
The current Scottish income tax rates and bands for 2019/20 and the proposed rates and bands for 2020/21 on non-savings and non-dividend income are as follows:
| Scottish Bands 2019/20 |
Scottish Bands 2020/21 |
Band name |
Rate |
| £12,501* - £14,549 |
£12,501* - £14,585 |
Starter |
19% |
| £14,550 - £24,944 |
£14,586 - £25,158 |
Scottish Basic |
20% |
| £24,945 - £43,430 |
£25,159 - £43,430 |
Intermediate |
21% |
| £43,431 - £150,000** |
£43,431 - £150,000** |
Higher |
41% |
| Above £150,000** |
Above £150,000** |
Top |
46% |
* assumes individuals are in receipt of the Standard UK Personal Allowance.
** the personal allowance will be reduced if an individual's adjusted net income is above £100,000. The allowance is reduced by £1 for every £2 of income over £100,000.
In the 2018 Autumn Budget, the UK Government announced that the UK-wide personal allowance would be frozen at its current level of £12,500 in 2020/21. The UK higher rate tax point for 2020/21 is also expected to be frozen at the 2019/20 amount of £50,000 (for those entitled to the full UK personal allowance) and the tax rates for non-savings and non-dividend income are expected to be maintained at 20%, 40% and 45% respectively. The additional rate of 45% is payable on income over £150,000.
Land and Buildings Transaction Tax change to non-residential rates and bands
The Government announced the introduction of a new 2% band for non-residential leases which will come into effect for contracts entered into on or after 7 February 2020. The rates and bands for non-residential LBTT transactions are as follows:
| Non-residential transactions (purchase price) |
Rate |
Non-residential leases (net present value of rent payable) |
Rate |
| Up to £150,000 |
0% |
Up to £150,000 |
0% |
| £150,001 to £250,000 |
1% |
£150,001 to £2 million |
1% |
| Over £250,000 |
5% |
Over £2 million |
2% |
Internet link: GOV.SCOT Budget