Scottish Budget Statement 2026-27

by Aitch, posted in General

Scotland’s Finance Secretary, Shona Robison delivered her third Budget statement to the Scottish parliament on 13 January 2026. This is the final Budget before the Holyrood elections due to take place in May.

There were no changes announced to the Scottish Income Tax rates. Following the UK Government’s extension of personal tax threshold freezes, the Higher, Advanced and Top rate thresholds will also remain unchanged until 2028–29. The Starter rate band is set to increase by 40.3% and the Basic rate band by 13.6% in 2026-27. This means that a larger portion of people's income will be taxed at the starter and basic rates helping to protect lower income households.

The Scottish rates and bands for 2026-27 are as follows:

Starter rate – 19%

£12,571 – £16,537

Basic rate – 20%

£16,538 – £29,526

Intermediate rate – 21%

£29,527 – £43,662

Higher rate – 42%

£43,663 – £75,000

Advanced rate – 45%

£75,001 – £125,140

Top rate – 48%

Above £125,140

The standard personal allowance remains frozen at £12,570. 

No changes were announced to the residential and non-residential rates and bands for the land and buildings transaction tax (LBTT). The standard rate of Scottish landfill tax will rise to £130.75 per tonne and the lower rate to £8.65 per tonne from April 2026 maintaining alignment with the corresponding taxes in the rest of the UK. It was also announced that new council tax bands will be introduced from April 2028 for residential properties valued at £1m more. The Budget measures are subject to final approval by the Scottish parliament.

Source:The Scottish Government | 26-01-2026
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Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
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