Scottish Tax - changes for 2023 to 2024: ready reckoners
Set of ready reckoners which show the estimated revenue impact of illustrative changes to Scottish Tax policy in 2023 to 2024, including Income Tax, Land and Buildings Transaction Tax and Non-Domestic rates.
Summary
This note presents a set of ready reckoners which show the estimated revenue impact of illustrative changes to Scottish Tax policy in 2023-24, including Income Tax, Land and Buildings Transaction Tax (LBTT) and Non-Domestic rates (NDR), relative to current policy. These have
been produced by the Scottish Government and are in line with the latest May 2023 forecasts of the independent Scottish Fiscal Commission (SFC). Official policy costings are produced by the SFC and therefore these ready reckoners are for illustration only.
| Illustrative tax change | Estimated revenue impact,2023-2024, £ million |
|---|---|
| Income Tax Rate Changes | |
| Increase Starter Rate by 1p | 58 |
| Increase Basic Rate by 1p | 213 |
| Increase Intermediate Rate by 1p | 164 |
| Increase Higher Rate by 1p | 88 |
| Increase Top Rate by 1p | 5 |
| Decrease Top Rate by 1p | -7 |
| Income Tax Threshold or Band Changes | |
| Increase the Starter Rate Band by £100 | -3 |
| Reduce the Starter Rate Band by £100 | 3 |
| Increase the Basic Rate Band by £1,000 | -14 |
| Reduce the Basic Rate Band by £1,000 | 15 |
| Increase the Higher Rate Threshold by £1,000 | -94 |
| Reduce the Higher Rate Threshold by £1,000 | 108 |
| Residential LBTT policy rate changes | |
| Increase rate applicable to £145,001-250,000 band by 1% point[1] | 28 |
| Increase rate applicable to £250,001-325,000 band by 1% point | 10 |
| Increase rate applicable to £325,001-750,000 band by 1% point | 9 |
| Increase rate applicable to above £750,000 band by 1% point | Negligible[2] |
| Decrease rate applicable to £145,001-250,000 band by 1% point | -30 |
| Decrease rate applicable to £250,001-325,000 band by 1% point | -10 |
| Decrease rate applicable to £325,001-750,000 band by 1% point | -10 |
| Decrease rate applicable to above £750,000 band by 1% point | -1 |
| Additional Dwelling Supplement (ADS) policy changes[3] | |
| Increase ADS rate by 1% point | 13 |
| Decrease ADS rate by 1% point | -16 |
| Non-residential LBTT policy changes | |
| Increase rate applicable to £150,001-250,000 band by 1% point | 2 |
| Increase rate applicable to the above £250,000 band by 1% point | 16 |
| Decrease rate applicable to £150,001-250,000 band by 1% point | -2 |
| Decrease rate applicable to the above £250,000 band by 1% point | -22 |
| Non-Domestic Rates policy changes | |
| Increase the Basic Property Rate (poundage) by 1p | 61 |
| Increase the Intermediate Property Rate by 1p | 6 |
| Increase the Higher Property Rate by 1p | 45 |
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