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Scottish Budget Statement 2021-22

Scotland’s Finance Secretary, Kate Forbes delivered her second Budget statement to the Scottish parliament on 28 January 2021. The date was selected to allow the Scottish Government time to deliver their Budget and have it approved before the start of the next tax year. This is the second time that Scotland has held a Budget before the rest of the UK. The UK Budget is scheduled to take place on Wednesday, 3 March 2021.

The Finance Secretary commented that the ‘Budget will help to bring much needed support and stability, to ensure our economy recovers and we protect those who have been hit the hardest’.

The main measures announced in the Budget included an extension to the 100% non-domestic rates relief for retail, hospitality and leisure businesses for a further three months and a reduction in the non-domestic rates tax rate applicable to all businesses by 0.8p to 49p. The Budget announcements also confirmed that ceiling for the nil rate band for residential land and buildings transaction tax (LBTT) will revert to £145,000 from 1 April, as planned. The standard rate of Scottish landfill tax will rise to £96.70 per tonne and the lower rate to £3.10 per tonne in line with the expected increases in other parts of the UK.

It was also announced that there would be no change in income tax rates and that the thresholds would increase in line with inflation. 

The proposed Scottish rates and bands for 2021-22 are as follows:

Starter rate – 19% £12,571 – £14,667
Basic rate – 20% £14,668 – £25,296
Intermediate rate – 21% £25,297 – £43,662
Higher rate – 41% £43,663 – £150,000
Additional rate – 46% Above £150,000

The Budget measures are subject to approval by the Scottish parliament and may possibly be revised following the UK Budget. 

Source: The Scottish Government Wed, 03 Feb 2021 00:00:00 +0100

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