Tax after Brexit (council and income tax)

The UK left the European Union on 31 January 2020. This process is often known as 'Brexit'.

The UK Government and the EU have now agreed a deal on their future relationship. From 1 January 2021 this 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.

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:

• PrepareforBrexit.scot - gives information to business owners to help prepare for Brexit, including tax information
• HM Revenue & Customs