After a year full of fiscal events including the Spring Statement, Growth Plan and Autumn Statement, it was Scotland’s turn recently to find out its government’s plans for the next tax year.
On 15 December, Deputy First Minister John Swinney outlined the Scottish government’s tax and spending plans for the year ahead in the Scottish Budget with key personal tax announcements including:
In his statement, Mr Swinney outlined the Scottish Government’s differing approach to Income Tax, saying “In this Budget, we are asking people on higher incomes to contribute more in taxation than those on lower incomes, but with the majority of people in Scotland still paying less in taxation than if they lived in the rest of the United Kingdom. By these decisions, everyone in Scotland will be able to enjoy the benefits of strong public services and a comprehensive social contract.”
Spring Budget 2023
Chancellor Jeremy Hunt confirmed he will set out a Spring Budget on 15 March 2023. In a written statement he outlined that he has asked the Office for Budget Responsibility (OBR) to prepare a forecast to accompany the Budget. This forecast, along with the one prepared for the Autumn Statement in November, will fulfil the obligation for the OBR to produce two forecasts every financial year. The Spring Budget gives the Chancellor an opportunity to reassess the energy market and the effect of interest rate increases.
The end of the tax year is only a few weeks away so it’s vital to ensure you are in the best place possible to take advantage of any allowances, exemptions and reliefs available and to prepare for the changes that come in over the next few years.
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Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change. The Financial Conduct Authority does not regulate tax planning.