Scottish Budget 2024-25

Scottish Budget 2024-5

The 2024–25 Scottish Budget was presented on 19 December. There have been significant changes to income tax rates; here’s a summary of the key points:

Income tax changes from 6 April 2024

  • There is a new 45% ‘Advanced’ rate for those with income from £75,001 – £125,140. As an example, this means that someone earning £100,000 will pay over £3,000 more a year in income tax than previously. Scotland also now has six tax bands, compared to three in the rest of the UK
  • For those with income over £100,000, the personal allowance (£12,570) reduces by £1 for every £2 earned over £100,000. This gives a marginal rate of 67.5% in the range of £100,000 – £125,140, compared to 60% in the rest of the UK
  • The Top rate band has increased from 47% to 48% (compared to 45% in the rest of the UK)
  • The Higher rate band threshold is frozen, while the upper limits for the Starter (£14,876) and Basic (£26,561) rates have increased for inflation.

Other notable announcements

  • Non-domestic property rates have increased for inflation for the Intermediate (54.5p) and Higher (55.9p) property bands
  • Business rates have been frozen for premises valued at less than £51,000
  • Hospitality businesses in Scotland’s islands will be given 100% relief for business rates, capped at £110,000 per company
  • The Small Business Bonus Scheme will also continue.

You can read the full Scottish Budget here.

If you have any questions on these announcements, please get in touch with Elaine McInroy.

Contact Us

Elaine McInroy
Partner, Edinburgh

Key experience

Elaine specialises in providing tax planning advice to private clients and their business interests.