The Scottish Budget, presented on the 4^th of December, included key updates on the Scottish Rate of Income Tax (SRIT) and Land & Buildings Transaction Tax (LBTT).

Scottish Rate of Income Tax (SRIT)

If your main home is in Scotland, or you’re classed as a ‘Scottish taxpayer,’ your earnings (excluding savings and dividends) are subject to SRIT. Shona Robinson, Cabinet Secretary for Finance & Local Government, confirmed there will be no changes to tax rates or bands during this parliament.

However, from the 6^th of April 2025, the thresholds for the Basic (20%) and Intermediate (21%) rates will increase by 3.5%. This means more of your income will be taxed at these lower rates before reaching the higher rates of 42% and above. For 2025/26, after your personal allowance, earnings will be taxed as follows:

Land & Buildings Transaction Tax (LBTT)

Rates for residential and non-residential LBTT stay the same, but the Additional Dwelling Supplement (ADS) increased from 6% to 8% on 5^th December 2024. This higher rate doesn’t apply if contracts (legal missives) were signed on or before 4^th December.