Scotland | Budget 2025-2026
On 4 December 2024, Shona Robison, the Cabinet Secretary for
Finance, presented Scotland's Budget for 2025-2026. The policy set out in this
Budget is proposed to take effect from the start of the tax year on 6 April
2025. The key tax measure affecting payroll is a proposed 3.5% increase in
the income thresholds for the starter, basic, and intermediate tax rates.
The updated thresholds are summarised in the table below:
|
|
Tax Rate
|
Annual Taxable Income (2024-2025)
|
Annual Taxable Income (2025-2026)
|
|
Starter rate
|
19%
|
£12,571* to £14,876
|
£12,571* to £15,397
|
|
Basic rate
|
20%
|
£14,877 to £26,561
|
£15,398 to £27,491
|
|
Intermediate rate
|
21%
|
£26,562 to £43,662
|
£27,492 to £43,662
|
|
Higher rate
|
42%
|
£43,663 to £75,000
|
£43,663 to £75,000
|
|
Advanced rate
|
45%
|
£75,001 to £125,140
|
£75,001 to £125,140
|
|
Top rate **
|
48%
|
Over £125,140
|
Over £125,140
|
*Assumes individuals receive the Standard UK Personal
Allowance.
**Those earning more than £100,000 will see their Personal
Allowance reduced by £1 for every £2 earned over £100,000.
Click here
to access the full Budget document.
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