In the recent budget, it was announced that Income tax on these will increase by two percentage points. But that was the budget for England and Wales, and only some of it is relevant in Scotland, but they don’t say that.

The rates of tax on dividends and savings income apply to taxpayers across the UK. However, the rates of tax on property for Scottish and potentially Welsh taxpayers will be determined by the devolved governments.

This goes alongside the fact that the rates of income tax and the rate bands are different. In Scotland, we use Scottish rates and bands for employment and property income, but we use the UK rates and bands for everything else.

For 2026/27 onwards, the basic and higher rates of income tax on dividends will increase by two percentage points. The basic rate for dividends will increase to 10.75% from 8.75%, and the higher rate to 35.75% from 33.75%. The additional rate for dividend income will continue at 39.35%.

For 2027/28, the rates of income tax on savings will be 22% (currently, 20%), the higher rate 42% (40%) and the additional rate 47% (45%).

The new property income rates will be set by the Scottish Government.

at the same level as for savings income (see above).

From 6 April 2027, the annual ISA cash limit will be set at £12,000, within the overall annual ISA limit of £20,000, although savers over the age of 65 will continue to be able to save up to £20,000 in a cash ISA each year.

Any increase in the tax rates on property may also encourage some property owners to consider holding the property through a company to benefit from lower rates of tax. However, this is not a step to be taken lightly, and it’s important that anyone considering this explores all the possible consequences, including up-front transaction costs.