Income tax
The structure of Scottish income tax will change in 2024/25:
- The starting levels for basic and intermediate rate tax were increased in line with inflation (6.7% to September 2023).
- The higher rate threshold will be frozen and the size of the band will contract.
- A new advanced rate band, at a rate of 45%, will be introduced on income between £75,000 (£62,430 + £12,570 personal allowance) and the starting point of the top rate of tax, which remains at £125,140.
- The top rate of tax will be increased from 47% to 48%.
| Scottish taxpayers – non-dividend, non-savings income | 2024/25 | 2023/24 | ||
| Tax Rate | Tax Rate | |||
| Starter rate on taxable income up to | 19% | £2,306 | 19% | £2,162 |
| Basic rate on next slice up to | 20% | £13,991 | 20% | £13,118 |
| Intermediate rate on next slice up to | 21% | £31,092 | 21% | £31,092 |
| Higher rate on next slice up to | 42% | £62,430 | 42% | £125,140 |
| Advanced rate on next slice up to | 45% | £125,140 | N/A | N/A |
| Top rate on income over | 48% | £125,140 | 47% | £125,140 |
Land and buildings transaction tax (LBTT)
There will be no changes to the LBTT bands.
| Land and buildings transaction tax (LBTT) on slices of value | |||
| Residential property | % | Commercial property | % |
| Up to £145,000 | 0 | Up to £150,000 | 0 |
| £145,001 – £250,000 | 2 | £150,001 – £250,000 | 1 |
| £250,001 – £325,000 | 5 | Over £250,000 | 5 |
| £325,001 – £750,000 | 10 | ||
| Over £750,000 | 12 | ||
| First-time buyers: 0% on first £175,000 Additional residential and all corporate residential properties £40,000 or more: add 6% to rates | |||
Scottish council tax rates
As previously announced, for 2024/25 the Scottish Government will freeze council tax rates.
Scottish non-domestic rates
New rateable values were introduced from April 2023, based on property values as at
1 April 2022. However, the poundage for 2023/24 was frozen at 2022/23 levels. For 2024/25 the poundage rate will be frozen again for businesses subject to the Basic Property Rate (those with rateable values of up to and including £51,000), while the poundage for the Intermediate and Higher Property Rates will rise in line with inflation to 54.5p and 55.9p respectively.
100% relief will apply in 2024/25 for hospitality businesses located on islands as defined by the Islands (Scotland) Act 2018 (capped at £110,000 per business). The Cabinet Secretary for Finance said that work with the hospitality sector, in the New Deal for Business Non-Domestic Rates sub-group, would continue on the sector’s long-term issues.
Other non-domestic rate measures included:
- Extending 90% renewables District Heating relief until 31 March 2027, and expanding it to include all district heating networks, where at least 80% of the thermal energy generated derives from renewables.
- Replacing the planned end of Enterprise Areas relief on 31 March 2024 with a phasing out over the following two years.
| Rateable Value | 2023/24 | 2024/25 | 2025/26 |
| £120,000 or less | 100% | 66.7% | 33.3% |
| £120,001 to £240,000 | 50% | 33.3% | 16.7% |
| £240,001 to £480,000 | 25% | 16.7% | 8.3% |
| £480,001 to £1,200,000 | 10% | 6.7% | 3.3% |
| £1,200,001 to £2,400,000 | 5% | 3.3% | 1.7% |
| Over £2,400,000 | 2.5% | 1.7% | 0.8% |
- All other existing reliefs will continue in 2024/25, including the multi-year transitional relief schemes announced in last year’s Budget.
Scottish landfill tax
The standard rate of Scottish landfill tax will increase from £102.10 a tonne to £103.70 a tonne and the lower rate from £3.25 a tonne to £3.30 a tonne from 1 April 2024 to maintain consistency across the UK.