Tax after Brexit (council and income tax)

Last updated: 20 December 2019

The UK will leave the European Union on 31 January 2020. We'll then enter a 'transition period' that's likely to last until the end of December 2020. During this period the UK will still follow EU rules.

Brexit will have an effect on some areas of life in Scotland.

This may include changes to some taxes, especially those paid by businesses.

Brexit has not happened yet, and many of the details are not yet known. This page gives the latest facts, but it will be updated as more details are confirmed. Please keep checking back for new information.

Local and devolved taxes

There are three types of taxes in Scotland – local taxes, devolved taxes and reserved taxes.

The taxes managed and collected by local authorities are:

  • council tax
  • non-domestic rates

Devolved taxes are managed by the Scottish Government. These include:

  • Scottish Income Tax (rates and bands only)
  • Land and Buildings Transaction Tax
  • Scottish Landfill Tax

It's unlikely that local or devolved taxes will directly be affected by Brexit.

Find out more information on council tax, devolved Scottish taxes and Scottish income tax.

Reserved taxes

Reserved taxes are managed by the UK Government. These include:

  • VAT
  • National Insurance
  • Corporation Tax

Reserved taxes (especially VAT) may change after Brexit. This may impact UK citizens and businesses.

The details of this will depend on what happens during the Brexit process, but the Scottish Government is monitoring progress and will provide updates here.

More information

More details on tax after Brexit will be added to this page as new information is available.

Meanwhile, there are a number of other sites you can check for updates:

The content on this site is correct as of today's date and is based on the information available at this time. Regular updates will be made as the Brexit process develops. In the event of a 'no deal', additional advice and information will be given on this site. Please continue to check back for updates.