Scottish Budget approved in Holyrood
Posted on February 22, 2018 by Wylie & Bisset
This budget has now been approved by MSPs and changes to income tax will come into effect from 6 April. These changes are the most significant made to personal taxation in Scotland since devolution took effect in 1999.
The budget has been approved as a result of a deal between the SNP and the Scottish Greens. While the impact of the changes to income tax on individuals is likely to be marginal, what is arguably more important is the break this represents from having UK-wide taxation set by the Treasury in London. Although it could be argued ordinary working Scots as well as businesses have had some time to prepare for this, it will be interesting to see the reaction as people realise that a decision taken at the Scottish Parliament will have a direct effect on their monthly pay packets when compared to others in the UK.
While nobody likes paying more tax, early indications seem to be that there is support for modest rises to protect Scottish public services from the impact of austerity. How this will be viewed going forward remains to be seen.
Whatever the changes ahead, Wylie & Bisset’s experienced Tax Team are the go-to source for advice on new income tax rates and other changes to taxation announced by both the Scottish and UK Governments. Contact Catherine McManus, Tax Partner for more details (firstname.lastname@example.org).
Click here for details on the proposed tax rates and allowances for 2018-19.