The tax implications for individuals in Budget 2017 were not particularly wide ranging and those which attracted most publicity will not affect Scottish residents. The main points were as follows:

  • Stamp duty land tax will be abolished on homes under £300,000 for first time buyers. Where the purchase price is between £300,000 and £500,000, there will be no SDLT on the first £300,000. Time will tell whether the Scottish Government will follow suit on 14 December. There are also changes to the Additional Dwellings Supplement in certain cases including divorce and anti avoidance legislation will be brought in where someone who changes their main residence retains an interest in their former main residence.
  • The income tax personal allowance will be £11,850 from April 2018. The higher rate band will increase to £46,350. Scottish rates of income tax are now determined by the Scottish Government and this is likely to be a fairly significant part of the forthcoming budget.
  • In further changes that affect non residents, from April 2019 non UK tax residents will be subject to CGT on gains on all land and buildings in the UK, not just residential property. The residential property provisions were introduced in April 2015.
  • Marriage allowance claims will be allowed to be back dated for 4 years where a spouse or civil partner is deceased. Marriage allowance allows individuals to transfer 10% of their personal allowance to their spouse where their spouse is not a higher or additional rate taxpayer.
  • Finally, changes were announced regarding venture capital trusts and enterprise investment schemes. From 6 April 2018 the EIS investment limit will be increased to £2 million provided that any amount over £1 million is invested in one or more knowledge intensive companies. The annual EIS and VCT limit on the amount of tax-advantages investments a knowledge-intensive company may receive will be increased to £10 million.

So in summary, the biggest impact for Scottish resident individuals is likely to come on 14 December when the Scottish Government present their budget. Significant changes to income tax may be made so check back in with us then for more details.