The Scottish Budget Update December 2018
The Scottish Government recently announced its plans for tax and spending for 2019 -20, set out by Scottish Finance Secretary, Derek Mackay. Ever since Philip Hammond announced his UK Budget on 29th October, we have been waiting to hear how the Scottish Government would respond to the Chancellor’s announcement on the increase in the UK income tax higher rate (40%) threshold by £3,650 (3%) to £50,000 from 6 April 2019.
So, what are the big ideas and spending commitments? We have provided a summary of a number of the main points you may find useful.
The headline making tax announcements from the Scottish Budget:
- Freezing the income tax higher rate threshold (41%) at £43,430 and the additional higher rate threshold (46%) at £150,000.
- The increase of the income tax starter tax band (19%) threshold from £13,850 to £14,549.
- An increase of the income tax basic rate band (20%) threshold from £24,000 to £24,944.
- Increase of the Land and Buildings Transaction Tax (‘LBTT’) additional dwelling supplement from 3% to 4% for ‘second home’ purchasers with effect from 25 January 2019 (if the contract for the transaction was entered into on or after 12 December 2018).
How we can help
At McCrea Financial Services, we have a wealth of knowledge across a wide range of financial planning, including Tax Planning and can work with you to ensure the right plans are in place.
To find out if you will be affected by these recent changes, why not contact us for a free, no-obligation meeting for further information, on 0141 572 1340 or by email at firstname.lastname@example.org.
Our sources: gov.scot, bbc.co.uk