Murray Beith Murray LLP is a leading Scottish private client law firm.
For 175 years we have specialised in meeting the legal, financial and administrative needs of individuals and families, family trusts, charities and private companies.
Murray Beith Murray LLP is a leading Scottish private client law firm.
For 175 years we have specialised in meeting the legal, financial and administrative needs of individuals and families, family trusts, charities and private companies.
Yesterday, the autumn’s third chancellor, proposed the autumn’s second statement. Given the later-than-usual nature of the statement, it was perhaps apt that the headline for the majority of taxpayers was “freezing”.
Income tax and National Insurance thresholds will be frozen at their current rates until April 2028. This does not change the tax rate, however, does fix the threshold which dictates what tax rate applies to a taxpayer.
The only exception to the threshold freezing is the 45% tax band, which has been reduced from those with income above £150,000, to those with income above £125,140. The result being that more taxpayers will move into paying tax at the highest tax bracket.
It should be noted that the above changes apply to non-savings and non-dividend income (e.g employment income, rental income, pension income) for England, Wales and Northern Ireland.
For the moment, these changes will largely not impact Scottish taxpayers. However, as the political divide between Scotland and the rest of the UK appears to continue widening, it will be interesting to see whether the Scottish government follow suit or “stand pat”. I suspect individuals’ opinion on that will be informed by their political persuasion, however we shouldn’t need to wait long for an answer, as the Scottish government is due to deliver its budget statement in December.
There were several further significant announcements in yesterday’s statement, which apply to both Scottish taxpayers, and the rest of the UK:
If this article has raised any questions or you would like to discuss your affairs with our specialist tax advisors then please complete our contact form or call 0131 225 1200.
Murray Beith Murray is a private client practice, made up of specialist lawyers from a variety of legal disciplines, including experts in asset protection and estate planning. The firm was established in 1849, as advisors for generations of clients, committed to our values of integrity, expertise and trust. This aim and these values continue to this day as does our commitment to be here when you need us.
