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Scottish Budget 2023
Our Tax Manager, Victoria Bishop, explains what yesterday’s Scottish Budget announcements could mean for you and your business.
Scotland’s Deputy First Minister, Shona Robison, presented the Scottish Government’s proposed spending and tax plans for the 2024/25 financial year with a range of new measures. The key points announced were as follows:
Changes to the rates of Income Tax for 2024/25
- Individuals falling within the income bracket of £75,001 to £125,140 will see a new tax band introduced at 45% for this range.
- Furthermore, those earning above £125,140 will face an elevated tax rate of 48%, reflecting an adjustment aimed at higher income earners.
- For those with lower incomes, the current tax rates will remain unchanged.
The Income Tax rates from 6 April 2024 will be as follows:
Band Income Range Rate Starter rate £12,571 – £14,876 19% Basic rate £14,877 – £26,561 20% Intermediate rate £26,562 – £43,662 21% Higher rate £43,663 – £75,000 42% Advanced rate £75,001 – £125,140 45% Top rate Over £125,140 48% Business premises rates over the value of £51,000 will increase in line with inflation.
Good news for hospitality businesses in the Islands, with 100% rate relief capped at £110,000 per business. Additionally, some renewable energy businesses will benefit from these reliefs.
Revaluation Transitional Relief will limit annual increases in Non-Domestic Rates liabilities due to revaluation, capping them at 25% for small properties with rateable values up to £20,000, 50% for those valued between £20,001 and £100,000, and 75% for those over £100,000.
Small Business Transitional Relief ensures that properties losing Small Business Bonus Scheme, or Rural Rates Relief eligibility due to revaluation, will not experience more than a £1,200 increase in rates liability per property.
Please give us a call on 01387 270340 if you have any queries about how the above might affect you or your business.
