Scottish Budget 2021 to 2022 - Your Scotland, Your Finances: guide

Taxes set in Scotland in 2021-22

Scottish Income Tax

The Scottish Parliament has control over parts of Income Tax paid in Scotland, specifically the power to set the rates and bands of Income Tax paid on non-saving, non-dividends income.

This is income earned through employment, self-employment, pensions or property.

Scottish Income Tax is collected by HMRC and the money raised through the tax is transferred to the Scottish Government.

The latest Scottish Income Tax rates and bands can be found here.

Non-Domestic Rates

Non-Domestic Rates (NDR), often referred to as 'business rates', are a tax paid on non-residential property. This includes supermarkets, high street retailers, schools, and even ATM sites and billboards. The amount of NDR paid is generally based on the estimated rental value of the property on the open market.

The Scottish Government sets the tax rate, but the tax is administered and collected by local authorities to spend on local services like education, social care and waste management.

More information on Non-Domestic Rates can be found here.

Land And Buildings Transaction Tax

Land and Buildings Transaction Tax is the tax payable when someone buys land or property in Scotland. A solicitor normally handles it for you when you are buying a house. It is also payable on non-residential property leases, such as hotels and student accommodation.

The current rates for Land and Buildings Transaction Tax can be found here.

Scottish Landfill Tax

Scottish Landfill Tax is a tax on the disposal of waste to landfill. The tax provides a financial incentive to reduce the amount of waste going to landfill, and therefore encourages recycling and the re-use of material. You will likely never pay this tax directly, instead, it is paid for by landfill operators who pass on costs to waste management services, businesses, and Local Authorities.

The current rates for Scottish Landfill Tax can be found here.