On the 13th January 2026, Scottish Finance Secretary, Shona Robison, announced the Scottish Budget 2026/27.
For more information on how this could impact you, Grant Macara, Financial Planner, discusses the key points below.
Key changes
Income tax: The threshold for the Basic and Intermediate Rates will increase by 7.4%. Robison cannot change the level at which people start paying tax, currently £12,571, as that is reserved to Westminster. However, she is now raising the threshold of two of Scotland’s other tax bands meaning people will pay the 19% starter rate on more of their money.
- The basic (20%) rate, which currently starts at £15,398, will go up by 7.4% to £16,537.
- The intermediate rate (21%), which currently starts at £27,492, will also go up by the same amount to £29,527.
- The higher tax rate (42%) will continue to kick in at £43,663.
- The advanced rate and top rate will also remain unchanged.
The Scottish Finance Secretary says because of these changes to Income Tax thresholds, more people on lower incomes in Scotland can expect to pay less tax than if they lived elsewhere in the UK.
Council Tax: A new Mansion Tax will bring in two new Council Tax Bands for high value homes from 2028, meaning homes valued over £1 million will pay more in council tax.
Scottish Child Benefit Payment: The Scottish Child Benefit Payment will be boosted to £40 per week for children aged under one years old. (current level of payment £27.15 per week).
Private jet tax: Travelling by private jet from Scotland will now be taxed.
College funding: There will be a 10% increase in college funding which overall will generate £70 million additional funding for this year.
Property rates for businesses: The Finance Secretary says that “in response to concerns from the business community” she will reduce property rates for businesses, while providing relief worth £184m over the next three years. There will be 15% non-domestic rates relief in 2026-27, worth £138m over three years for retail, hospitality and leisure premises.
The small business bonus scheme, which removes rates from 100,000 small business, will also be continued for three years. Robison says this will mean over 96% of retail, hospitality and leisure businesses will pay no or reduced rates.
NHS in Scotland extra funding: There will be £36 million extra spending on high street walk-in NHS GP clinics as the government is committed to ending the “8am rush” for a GP appointment, says the Finance Secretary. To that end, she announces £36m to begin the roll-out of high street walk-in GP clinics, with the first coming soon.
£68 billion further investment in the budget: The Finance Secretary says there will be an investment of almost £68bn in the budget for the wellbeing of the people of Scotland. When combined with the Scottish Spending Review and Infrastructure Investment Pipeline, she says there will be a total investment of almost £200bn, demonstrating the scale of the Government’s ambition for the nation.
Navigating change
Some of the above changes may impact your financial strategy, particularly when looking at the new property tax changes and how this may affect your estate planning over the coming years. Your financial security is our priority. Our team of experienced planners is here to guide you through any changes that may affect your financial plan, so you can stay focused on what matters most.
If you have any questions or would like to understand how these updates could impact your personal circumstances, please reach out to your financial planner directly or contact us here. We’re here to help every step of the way.
Important Note
The information contained within this document is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
This article is distributed for educational purposes only. This communication does not constitute financial advice. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult your financial planner to take into account your particular investment objectives, financial situation and individual needs.
The opinions stated in this document are those of the author and do not necessarily represent the view of Progeny and should not be relied upon to make a financial decision.
Information contained herein has been obtained from sources believed to be reliable but is not guaranteed.
Please note
Tax treatment depends upon individual circumstances and is based on current UK tax legislation, that is subject to change at any time.
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