1. Scottish income tax rates remain unchanged: Starting - 19%, Basic - 20%, Intermediate - 21%, Higher - 41% and Top - 46%.

2. Except for the top band of £150,000, which is frozen, all tax rate bands will increase by inflation.

3. Plans to implement an effective Scottish personal allowance of £12,750 have been withdrawn due to the current circumstances to release funds for use elsewhere.

4. LBTT rates remain unchanged and will revert to pre-pandemic thresholds from 1 April 2021 - so the temporary nil rate band for residential property will reduce from £250K to £145K.

5. Additional dwelling supplement (ADS) remains at 4%. A consultation on ADS is still to come, including on the time allowed to replace main residence - but that remains at 18 months for purchases now.

6. First time buyer relief for LBTT will remain in place – this increases the nil rate band to £175K for first time buyers.

7. The non-domestic (business) rates poundage is reduced to 49p (from 49.8p), at all levels.

8. Scottish landfill tax rates will increase in line with inflation.

9. Assignment of Scottish VAT receipts to Scotland, due from April 2021, is being delayed until there is a review of the Scottish Fiscal Framework, due to the current economic climate.

10. The 100% non-domestic rates relief for the retail, hospitality, leisure and aviation sectors is extended for at least three months, and will apply until the end of June 2021.


Isobel d'Inverno

Director of Corporate Tax

Alan Barr


Neil Ritchie

Director of Personal Tax

Leigh Gould