Outlook iconDerek Mackay MSP, Cabinet Secretary for Finance and the Constitution delivered his Scottish draft budget for 2019-20 in the Scottish Parliament on 12 December 2018. 

The key announcements that will affect individuals and businesses in Scotland included:

Spending plans announced for the forthcoming tax year beginning on 6 April 2019 include:


Scottish Rates of Income Tax: 2018-19 and 2019-20

As income tax is only partially devolved under the Scotland Act 2016, Scottish taxpayers will continue to pay income tax on their savings and dividend income according to the rates and bands set by the UK Parliament - see our Tax Rate Card 2018-19, whereas non-savings and non-dividend income e.g. salary, will be taxed according to the Scottish Rate of Income Tax (SRIT) rates and bands as set out below.

  Scottish Rate of Income Tax 2018-19 2019-20
Personal Allowance 0% £0-£11,850 £0-£12,500
Starter Rate 19% £11,851-£13,850   £12,501-£14,549
Basic Rate  20%  £13,851-£24,000  £14,550-£24,944
Intermediate Rate 21%  £24,001-£43,430  £24,495-£43,430
Higher Rate  41%  £43,431-£150,000  £43,431-£150,000
Top Rate  46% Over £150,000  Over £150,000


We will keep you posted on the likely impacts of the changes and any future Scottish Government announcements released as the legislation goes through the Scottish Parliament in early 2019.

MTD for VAT information session 13 February 2019, 9am-10.30am, Martin Aitken & Co Glasgow office >find out more

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If you have any questions about the summary’s contents or how any aspects of your tax and financial planning may be affected by the proposals contained in the Scottish Budget 2019-20 announcement, please get in touch with your usual Martin Aitken & Co or Martin Aitken Financial Services Ltd contact to discuss.  

This summary has been prepared very rapidly and is for general information only. All statements within this document are based on our understanding of the changes proposed within the 12 December 2018 Scottish Budget.

You are recommended to seek professional advice before taking any action on the basis of the contents of this summary. Publication date: 13 December 2018.