Scottish Finance Secretary Kate Forbes announced the draft Scottish Budget for 2022-23 on 9 December 2021. 

Scottish Income Tax has applied since April 2016 and is payable by Scottish taxpayers on non-savings and non-dividend income only. This followed the 2015 introduction of Land and Buildings Transaction Tax (LBTT) which replaced Stamp Duty Land Tax in Scotland.

Income Tax 

From 6 April 2022:

  • No changes to Income Tax rates.
  • The starter and basic rate bands will increase by CPI inflation (3.1%).
  • The higher and top-rate thresholds remain at 2021-22 levels. 

The proposed new bands (assuming individuals are in receipt of the standard UK personal allowance) from 2022-23 are: 

Rate Band of income (£) 
   

Proposed

2022-23

Current

2021-22

Starter rate 19 12,570 - 14,732 12,570 - 14,667
Basic rate 20 14,732 - 25,688 14,667 - 25,296
Intermediate rate   21 25,688 - 43,662 25,296 - 43,662
Higher rate 41 43,662 - 150,000 43,662 - 150,000
Top rate 46 150,000 + 150,000 +

 

Land and Buildings Transaction Tax (LBTT) 

  • Rates and bands of LBTT will remain unchanged for 2022-23 for both residential and non-residential transactions. 
  • The Additional Dwelling Supplement (ADS) will remain at 4%. 
    • A call for evidence on the operation of the ADS will be launched shortly. 

Scottish Landfill Tax (SLT) 

  • From 1 April 2022, the standard rate of SLT will increase to £98.60 per tonne and the lower rate of SLT will increase to £3.15 per tonne. These increases will match Landfill Tax charges across the rest of the UK.

Non-domestic rates

  • The Basic Property Rate 'poundage' will increase to 49.8 pence on 1 April 2022. 
  • The Intermediate Property Rate will be 51.1p and the Higher Property Rate 52.4p.
  • To support the retail, hospitality and leisure sectors, a 50% business rate relief will apply for the first three months of 2022-23, capped at £27,500 per taxpayer.

Useful guides on this topic

Scottish Income Tax: Am I a Scottish taxpayer?
Who does the Scottish Income Tax apply to? Am I resident in Scotland? What constitutes a residence and the 'main' residence?

Scottish Income Tax
What is Scottish Income Tax? 

Scottish Income Tax Rates
What is the Scottish rate of Income Tax? What is the rate of Scottish Tax?  

Scottish LBTT Rates
What are the Land and Buildings Transaction Tax (LBTT) rates?

External link

Scottish Budget 2022-23


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