Scottish budget – income tax changes and what they mean for you

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What you need to know about the latest Scottish income tax changes and what they mean for you?

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 20 December 2023

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

Deputy First Minister of Scotland and Finance Secretary Shona Robison delivered the Scottish government’s 2024/25 budget yesterday.

Tax was the main talking point as we saw a string of new changes proposed, designed to help address the £1.5bn funding shortfall.

Here are the main income tax changes and what they could mean for you and your finances.

This article isn’t personal advice. ISA, pension, and tax rules can change, and any benefits depend on your personal circumstances. If you’re not sure if something is right you, seek advice.

It’s estimated that over a third of Scottish adults won’t be impacted by these new tax changes. And over half of Scottish taxpayers will carry on paying less income tax in the 2024-25 tax year than if they lived elsewhere in the UK.

Instead, ‘those with the broadest shoulders are (being) asked to contribute a little more.’

That