Scottish Budget 2026 to 2027: Scottish tax ready reckoners
This note presents a set of ready reckoners which show the estimated revenue impact of illustrative changes to Scottish tax policy in 2026-27, including Income Tax, Land and Buildings Transaction Tax (LBTT) and Non-Domestic Rates (NDR), relative to the policies announced for 2026-27.
Footnotes
1 See Scotland's Tax Strategy: Building on our Tax Principles
2 See for example HMRC Direct effects of illustrative tax changes and Welsh rates of Income Tax ready reckoner 2025 to 2026.
3 See Scottish Fiscal Commission, How We Forecast Income Tax and How we forecast devolved taxes, May 2021
4 This includes property income, which in Scotland cannot currently be taxed at a different rate from other NSND income. However, the UK Government set separate rates for this in England and Northern Ireland from April 2027 in the latest Budget and the Finance Bill will transfer similar powers to Scotland.
5 Scottish Government, Scottish Income Tax: 2018-19 Policy Evaluation, December 2021
6 See Labour market participation and intra-UK migration of taxpayers - GOV.UK (www.gov.uk)
7 For non-residential leases, the tax payable is based on any lease premia and the net present value of the rent payable i.e. a different basis to non-residential conveyances. For simplicity, we have excluded non-residential leases from the ready reckoner.
8 As at 1st June 2025, 124,990 (49% of all non-domestic properties) received an exemption from rates or a 100% relief. Any property receiving 100% rates relief would not pay more in NDR as a result of a change in rates. Non-domestic rates relief statistics 2025 - gov.scot (www.gov.scot)
9 For more information on the operation of the NDR pool, please see The Scottish Government Non Domestic Rating Account for the year ended 31 March 2024 - gov.scot (www.gov.scot)
10 For more information on the NDR appeals process, see Non-domestic rates appeals - mygov.scot