The UK left the European Union on 31 January 2020. This process is often known as 'Brexit'.
We're now in a transition period (also known as the implementation period) that's likely to last until the end of December 2020. This means the UK is currently still following EU rules.
In January 2021 the transition period will end and our new relationship with the EU will begin. There will be effects on some areas of life in Scotland.
This may include changes to some taxes, especially those paid by businesses.
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.
Reserved taxes are managed by the UK Government. These include:
- 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 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:
- PrepareforBrexit.scot - gives information to business owners to help prepare for Brexit, including tax information
- HM Revenue & Customs
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.