Other taxes

In addition to Income Tax and National Insurance, there are other taxes in Scotland that may or may not affect someone moving to Scotland to live and work.

Value Added Tax (VAT)

VAT is a tax charged on most business transactions made in the UK.

It is also charged on goods, and some services, imported from places outside the European Union and on goods and some services coming into the UK from the other EU countries.

VAT is charged at 17.5 percent on most items but this will increase to 20 percent on 1 January 2011.

VAT is included in most items available to purchase on a regular basis, such as food and entertainment.

Council Tax

Council Tax is a form of local taxation, paid to your local council, for services the council operate such as refuse collection, street lighting, water supply and local amenities.

You are required to pay this tax by law and it is a criminal offence not to.

Rates are set by individual local councils and vary according to the value of the property in which you live.

The amount you pay is based on the estimated value of the property and the number of people living in it.

Council Tax rates in all Scottish councils are lower than the UK average.

Find out how to register for Council Tax 

Stamp duty

Stamp duty is payable whenever you buy a property, except properties in certain designated disadvantaged areas.

 

The rates are as follows based on the value of property

 

  • Up to and including £125,000 - 0 per cent
  • £125,001 to £250,000 - 1 per cent
  • £250,001 to £500,000 - 3 per cent
  • Over £500,000 - 4 per cent

Other taxes that may affect people living and working in Scotland include Inheritance Tax and Capital Gains Tax.