Scotland tax system - taxation of Scottish companies and individuals: VAT, income tax and capital gains. Tax treaties of Scotland.

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Taxes of Scotland

Сorporate tax
Capital gains tax
20%
VAT
Withholding tax
No
Exchange control

info
Basic taxes (briefly)

Personal tax
45%
Corporate tax (in detail)
Income tax is not paid by the partnership. Instead, partners include the current income of the partnership in their share of their taxable profit / income, without waiting for the distribution of the partnership's income.
Capital gains tax. Details
VAT. Details
The standard VAT rate is 20%, reduced - 5%, zero -0%. Certain goods and services are exempt from VAT or are outside the UK VAT system.
Other taxes
Government fee
Stamp duty
0.5%

Taxation of Scottish Partnerships

The Scottish partnership is regarded as a legal entity.

At the same time, a Scottish partnership, like other partnerships in the UK, is “transparent” for tax purposes. This means that the partnership does not pay corporation tax. Instead, partners include their share in the partnership’s current income in their own taxable profit/income, without waiting for the distribution of the partnership's income.

Partners are taxed in accordance with general tax rules adopted in the UK and/or the country in which they conduct business.

If the partners do not conduct business in the UK or receive income in the UK, then they will not be taxed in the UK.

Being tax “transparent”, a partnership cannot take advantage of UK double taxation treaties.

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