With the delivery of the 2018/19 Scottish Draft Budget, Finance Secretary, Derek Mackay laid out plans to protect the NHS and public services, support low earners and look to unlock Scotland’s economic potential.
The biggest change was to the income tax system, which is set to raise an additional £164 million to fund public spending in the coming years. The changes signal a significant departure from the rest of the UK, with two additional bands introduced and a 1% increase to the higher and additional rates of Income Tax.
The changes announced to Land and Buildings Transaction Tax (LBTT) for first time buyers were a welcome introduction for the property sector and are, no doubt, a direct response to similar announcements made in relation to Stamp Duty Land Tax in the UK Budget in November 2017. This could be seen as the most significant Scottish Budget to date, and the changes announced mark a further departure from the tax system in the rest of the UK.
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