Scottish Budget confirms bands and rates for 2025/26
Ahead of the Scottish Budget, there were rumours that tax hikes were on the way. However, the announcements made on the day will see some easing of tax for lower earners. What’s the full story?
On 4 December the Scottish government published its 2025 Budget, which included the proposed income tax rates for 2025/26. The good news is that the feared changes didn’t materialise. Instead there was some easing of tax for those on lower incomes. The proposed income tax rates for 2025/26 are as follows:
|
Band |
Income range |
Rate |
|
Starter rate (on income exceeding tax reliefs and allowances) |
£12,571 - £15,397 |
19% |
|
Basic rate |
£15,398 - £27,491 |
20% |
|
Intermediate rate |
£27,492 - £43,662 |
21% |
|
Higher rate |
£43,663 - £75,000 |
42% |
|
Advanced rate |
£75,001 - £125,140 |
45% |
|
Top rate |
Above £125,140 |
48% |
If the changes are approved by the Scottish Parliament, they will mean the Starter and Basic bands increase above inflation, by 22.6% and 6.6% respectively. The document also pledges that no new bands will be introduced, and no further changes to rates will be made by the current Parliament.
Related Topics
-
Can you claim input tax on overseas sales expenses?
Your business sells goods and services to overseas customers, and you do not charge VAT. Can you still claim input tax on any UK expenses that directly relate to these sales?
-
A guessing game - interest rates and employee loans
Buried in the 2024 Autumn Budget were small print changes to HMRC’s “official rate” of interest. The consequences of these have just taken effect. How might they affect you and your employees?
-
Do hybrid workers take fewer sick days?
A survey of 2,000 hybrid workers by International Workplace Group has revealed that more than a third are taking fewer sick days than they did when they were working full time in the office. What are the potential reasons for this?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.