The Real MacKay – Scottish Budget Commentary

On Thursday 14th December, Finance Secretary, Derek MacKay, delivered Scotland’s Budget for the 2018/19 tax year. Whilst a tax rise was expected, the creation of new tax bands was not. In Scotland, we already have a lower basic rate band than the rest of the UK, but Mr MacKay introduced a series of new rates. Earnings between £11,850 and £13,850 will be taxed at 19%, earnings between £24,000 and £44,290 will be taxed at 21% with the higher rate of tax rising by 1% to 41% and the additional rate rising to 46%.

Head of EQ Taxation, David Morrison, commented “In a country where a more simplified tax system would be welcomed, the Finance Secretary has introduced a series of new tax rates which will significantly add to the complexity of preparing a tax return in Scotland, yet not likely bring in much additional revenue. I’d take this opportunity to appeal to Mr MacKay that, in future Budgets, simplicity should be a priority rather than adding further rates”.

If you’d like to speak to someone about the Scottish Budget, or get advice on what this means for you, please contact our taxation team via taxation@eqaccountants.co.uk or call your local office to speak to one of our tax specialists.