Main announcements from the Scottish Budget 2021

On 28 January, Finance Secretary Kate Forbes delivered the Scottish Budget for 2021/22. A year after the first case of COVID-19 was confirmed in Scotland, the focus of this Budget was on providing support and stability in the immediate term. We’ve highlighted the main announcements below:

• Strategic Framework Business Fund (SFBF) will continue to support businesses beyond the end of the financial year, should funding from the UK government continue as expected
• Discretionary Fund to be doubled to £60m for local authorities to issue to businesses that need it most
• Commitment to pay February SFBF grants at level 4, regardless of what level a business is in for that month
• Scottish Income Tax Rates will remain the same and thresholds will rise with inflation, except for the top rate at £150k which will be frozen
• Land and Buildings Transactions Tax (LBTT) temporary nil rate band will end, reverting to £145k from 1 April. First time buyers will continue to benefit from a £175k nil rate band, saving them up to £600 off their tax bill
• A reduction in the non-domestic business rates poundage to 49p

Partner & Head of EQ Taxation, David Morrison, comments, “Given the timing of the Scottish Budget it is unsurprising that there was little of note. With the UK Budget on the 3^rd March expected to bring bigger changes, I would not be surprised if a follow up Scottish Budget was announced. Our EQ Taxperts will endeavour to keep you up to date at all times and welcome you to get in touch to discuss any matter.”

You can read the full Scottish Budget 2021-22 statement here.

If you’d like to know what these announcements will mean for you and your business, please get in touch with your usual EQ contact or call one of our offices.