1989 - 2019 30 years in business Friday, 19th April 2019

Scotland Sets Out Tax Policy Direction

Dear Clients, 

Scotland’s SNP administration has published its Programme for Government for 2016-17, which sets out proposals for reforms to income tax, air passenger duty (APD), and council tax.

According to the Programme, over the next two years the Government will:

  • . Announce at Budget 2017 plans to use Scotland’s new additional income tax rate-setting powers, including measures to freeze the basic rate, guarantee increases in the personal tax-free allowance, and restrict the threshold for higher rate taxpayers to a maximum of inflation;

  • . Legislate for a devolved tax to replace UK Air Passenger Duty in Scotland from April 2018, with a commitment to halve APD and abolish it when resources allow;

  • . Reform the method for calculating the council tax rate for higher bands, introduce a Council Tax Reduction Scheme for low-income households in higher rate bands, and allow local authorities to increase council tax across all bands by a maximum of three percent;

  • . Amend the business rates (property tax) regime, to further expand the Small Business Bonus Scheme from 2017; and

  • . Pending the outcome of an ongoing consultation, set out Scotland’s response to the UK Government’s policy of an Apprenticeship Levy, to “develop a distinctly Scottish approach on the levy.”


Should you require any further clarification, please do not hesitate to contact us at:


Kind Regards

Cardwell Advisory Desk


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