Scottish tax ready reckoners: direct effects of illustrative tax changes for 2024 to 2025
This note presents a set of ready reckoners which show the estimated revenue impact of illustrative changes to Scottish Tax policy in 2024-25, including Income Tax, Land and Buildings Transaction Tax (LBTT) and Non-Domestic Rates (NDR), relative to the policies announced for 2024-25.
Footnotes
1. Please see the following link: Framework for Tax 2021
2. See for example HMRC's Ready Reckoners and Welsh rates of income tax ready-reckoner 2023 to 2024.
3. See Scottish Fiscal Commission, How We Forecast Income Tax and How we forecast devolved taxes,May 2021
4. For Income Tax rate changes, the impacts of tax increases and tax decreases are broadly symmetric. This means a 1p increase in any rate will raise broadly the same amount as a 1p decrease in that same rate would cost.
5. The zero-rate threshold for home movers is equal to £145,000. For first-time buyers the threshold is £175,000.
6. Estimated revenue impacts of a change in the ADS rate are based on those transactions which are liable for ADS and where no claim for repayment is expected to be made in the future (the share of such transactions is estimated taking into account historic trends). See commentary on this in main text.
7. Scottish Government, Scottish Income Tax: 2018-19 Policy Evaluation, December 2021
8. HMRC, Estimating Scottish taxpayer behaviour in response to Scottish Income Tax changes introduced in 2018 to 2019, December 2021
9. Scottish Government Budget 2024-25
10. 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.
11. Scottish Government Budget 2024-25
12. As at 1st April 2023, see Table 1.1 of the publication Non-domestic rates revaluation 2023 in Scotland.
13. As at 1st July 2022, 145,370 (57% of all non-domestic properties) received 100% rates relief. Any property receiving 100% rates relief would not pay more in NDR as a result of a change to the Basic Property Rate. Statistics for 2023 are not yet available.
14. For more information on the operation of the NDR pool, please see Non Domestic Rating Account: year ended 31 March 2023 - gov.scot (www.gov.scot)
15. For more information on the NDR appeals process from 1st April, see Non-domestic rates appeals - mygov.scot
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