The Scottish Government published its Budget yesterday for 2022/23.
As far as financial services is concerned, there was very little expected given most of financial services is covered by UK national laws rather then devolved government Scottish legislature.
Scotland does have its own powers to set income tax rates and bands though as well as Stamp Duty rates. Here are the changes:
Scottish Rates of Income Tax (SRIT):
Band Name |
Tax Rate % |
Taxable Income Bands £ |
|
2021/22 |
2022/23 |
||
Starter |
19 |
0 - 2,097 |
0 - 2,162 (inflation increase 3.1%) |
Basic |
20 |
Over 2,097 -12,726 |
Over 2,162 -13,118 (inflation increase 3.1%) |
Intermediate |
21 |
Over 12,726 – 31,092 |
Over 13,118 – 31,092 (upper threshold unchanged) |
Higher |
41 |
Over 31,092-150,000 |
Over 31,092-150,000 (unchanged) |
Top |
46 |
Over 150,000 |
Over 150,000 (unchanged) |
Stamp Duty:
Scotland’s Land and Buildings Transaction Tax (Scotland’s Stamp Duty) rates and bands remain unchanged.
Council Taxes:
The Scottish Budget has proposed that the cap on council tax rises be scrapped for the next financial year, meaning Scottish residents will likely pay more from April 2022.
Other Taxes:
There are no changes to capital gains tax, inheritance tax or dividends tax rates as these are set by Westminster.
Comment
No surprises really given that both devolved and the national government are ‘sitting tight’ as we try and move to close off the covid-19 pandemic.