The Scottish finance secretary and deputy first minister John Swinney has announced tax changes in the context of “spectacularly difficult times”. The following details apply for income tax from 6 April 2023:
- The UK-wide personal allowance will remain at £12,750 (and this is expected to apply to 2027-28).
- The Scottish starter and basic rate bands will remain at £14,732 and £25,688 respectively.
- The starter, basic and intermediate rates will remain unchanged.
- The higher rate threshold of £43,662 will also remain unchanged.
- The top rate threshold is reduced to £125,140.
- The higher rate of income tax increases from 41% to 42%.
- The top rate increases from 46% to 47%.
Other announcements include the following:
- The additional dwelling supplement increases from 4% to 6% from today (16 December 2022).
- Increases are made to the Scottish landfill tax.
- The next non‑domestic property revaluation will take effect on 1 April 2023, based on rental values as at 1 April 2022. Draft values have already been published.
- Social security benefits will rise by 10.1% (the inflation rate).
- The Scottish child payment will remain at £25 per week.