We have prepared this summary of the 2026/27 Scottish budget with the best interests of our clients in mind – small businesses and individuals, and the not for profit sector in Scotland. 

We hope you find it helpful. If any matter is relevant to you now or in the future, please get in touch.

  1. Income Tax – Scotland still has six income tax bands for earned and property income, and the lower of these bands (Starter and Intermediate) have been increased by 7.4%. The higher three bands (Higher, Advanced and Top) have been frozen. The income threshold at which Scottish taxpayers pay more tax than the main UK rates is around £33,500.
  1. ‘Mansion Tax’ – Two new Council Tax bands from 1 April 2028; Band I for properties valued between £1m and £2m, and Band J for properties valued above £2m. This follows the UK Government’s introduction of the High Value Council Tax Surcharge, effective from the same date. The actual amounts for these new bands (and all existing ones) will be set by individual Local Authorities.
  1. Business Rates – Properties in retail, hospitality and leisure which are eligible for the Basic or Intermediate Property Rate will enjoy 15% relief on their rates bill (capped at £110k per business). In addition, business rates ‘poundage’ rate (how business rates are calculated based on the rateable value) will decrease for the Basic Property Rate (to 48.1p), the Intermediate Property Rate (to 53.5p) and the Higher Property Rate (to 54.8p) – meaning all most businesses’ rates bills will also reduce.
  1. LBTT – Land and Buildings Transaction Tax – No changes to LBTT in this budget, and Additional Dwelling Supplement (8%) remains at the same level. Look out for a large scale review of LBTT within the next parliament.

  1. Arts and Culture – A welcome increase of 8% overall to the Culture budget, including £11m more for Creative Scotland’s Multi Year Funding programme.

And finally…

  1. Feeling Flush? The new Private Jet Supplement will increase tax on travel by private jet – if this concerns you please contact our office for a short discussion around our firm’s fees for the year ahead.

Disclaimer! This is not a complete guide to the Budget and should not be relied on as detailed or individualised tax advice.