• Share on LinkedIn
  • Share on Twitter
  • Share on Facebook

Buckingham: 01280 875250 Milton Keynes: 01908 886040 Aylesbury: 01296 769010

The numbers
people with a
balanced approach

Request a Callback

New tax bands announced in Scottish Budget

Newsletter issue - January 2018.

In the Scottish Budget, which took place on 14 December 2017, Scotland's Financial Secretary, Derek Mackay, announced that two thirds of income taxpayers will pay less next year on their current income. However, new bands of income tax were also announced, which will see taxes rise for Scottish taxpayers in the middle income bracket.

The Draft Budget 2018/19 proposes a progressive income tax policy which protects low earning taxpayers through the introduction of a new Starter Rate of tax.

It was also confirmed that a new intermediate rate of tax of 21% will be introduced, and the higher and top rates of tax will rise to 41% and 46% respectively.

As a result of these changes, and the increase in the personal allowance, all taxpayers earning up to £33,000 will be protected from any increase in tax rates. Those earning more than £33,000 will pay only a proportionate amount more.

A majority of taxpayers (55%) in Scotland will pay marginally less in 2018/19 than they would in the rest of the UK.

It is hoped that these measures will raise an additional £164 million of revenues to support Scotland's investment plans in relation to healthcare without having to reduce spending on police and fire services, social care or education.

Delivering his Budget speech, Mr Mackay said "Our new, fairer, income tax policy will protect the 70% of taxpayers who earn less than £33,000 a year and ensure they pay less tax next year for any given income whilst asking those earning more than £33,000 to pay a proportionate amount more to support our public services."

"Our plans also ensure that over half of taxpayers will pay slightly less in Scotland next year than they would in the rest of the UK, protecting low incomes and supporting the economy."

Income tax proposals for 2018/19 for Scottish taxpayers can be summarised as follows:

In addition, the Draft Budget confirmed that for Residential Land and Building Transaction Tax (LBTT), the Scottish Government will set a new zero rate threshold for first time buyers of £175,000 - taking 80% of first time buyers out of tax altogether. The residential and non-residential rates and bands for LBTT will remain unchanged.

 

How Big Is Your Business?

Regardless of the size of your business Courts Accountancy Services can help you every step of the way.

Get the right service level for your needs. Whether it's a compliance service, a growth service or simply a more personal pro-active service we are here to help and take away some of the worries and burdens that running a business brings.

  • Start-up
  • Small Business
  • Medium Business
  • Large Business

 

Helping You Take The Right Step

To become successful in business and an entrepreneur you need the right attributes. A good idea, optimism, passion, persistence, flexibility, focus, a plan to make it work, a way to finance your business, hard work and the right people around you.

Courts Accountants can help you every step of the way. Whether its starting out, growing, exiting, financing, structuring we have a team that can make it happen.

Get a Fixed Quote

sage

scrollup