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Aberdeen sits within Scotland and is governed by a mixture of UK-wide tax laws and devolved Scottish taxes. HM Revenue and Customs administers UK-wide taxes such as Income Tax on savings and dividends, Capital Gains Tax, Corporation Tax, VAT, and National Insurance. Scotland sets its own rates and bands for Scottish Income Tax on employment, pension, and most trading income, which HMRC still collects. Scotland also has devolved property and environmental taxes, notably Land and Buildings Transaction Tax on property transactions and Scottish Landfill Tax, both administered by Revenue Scotland. Locally, Aberdeen City Council administers Council Tax and non-domestic rates. The region has a strong energy sector presence, so specialist rules affecting oil-and-gas companies and contractors often arise alongside mainstream personal and business tax obligations.
Tax is technical, deadlines are strict, and penalties can escalate quickly. You may benefit from a lawyer or specialist tax adviser if you face an HMRC compliance check or tax investigation, need to appeal a tax decision or penalty, are buying or selling property in Aberdeen and need to assess Land and Buildings Transaction Tax and any Additional Dwelling Supplement, run or are setting up a business in the energy supply chain and want to structure operations tax efficiently, have residence or domicile questions such as moving to or from Scotland, spending time offshore, or working cross-border, are a contractor affected by off-payroll working rules often called IR35, have capital gains on Scottish or overseas assets and need to manage reliefs and reporting, need help with VAT including registration, Making Tax Digital, and partial exemption, are dealing with inheritance and estate planning, including business or agricultural reliefs, or want to resolve historical issues by voluntary disclosure and avoid criminal risk. Legal support can help you interpret the law, manage risk, negotiate with tax authorities, and present your position clearly if a dispute goes to the tribunal.
Scottish Income Tax applies to Scottish taxpayers on non-savings and non-dividend income. You are a Scottish taxpayer if you have a close connection to Scotland, usually your main place of residence. HMRC collects the tax using Scottish rates and bands. Savings and dividend income remain subject to UK rates.
Property transactions in Aberdeen fall under Land and Buildings Transaction Tax. Residential and non-residential rates and thresholds are set by the Scottish Government and change from time to time. The Additional Dwelling Supplement is an extra charge on purchases of additional residential properties such as second homes or buy-to-lets. There are repayment and relief provisions in specific circumstances subject to strict time limits. Revenue Scotland administers LBTT and ADS.
Council Tax and non-domestic rates are set and collected by Aberdeen City Council under Scottish legislation. Reliefs exist, for example the Small Business Bonus Scheme and sector-specific reliefs, subject to eligibility.
Businesses must comply with UK-wide Corporation Tax, VAT, PAYE, and National Insurance. The main Corporation Tax rate and small profits rules apply UK-wide. Energy sector companies may be affected by ring fence corporation tax rules, the supplementary charge, and the Energy Profits Levy for upstream oil-and-gas activities. Specialist allowances and restrictions can apply to ring-fenced activities.
Capital Gains Tax is UK-wide. UK residents disposing of UK residential property may have to report and pay any Capital Gains Tax within a short time after completion. Private Residence Relief, lettings relief in limited cases, and annual exemptions may mitigate the bill.
Making Tax Digital requires digital record-keeping and returns for VAT, and phased obligations for Income Tax self assessment are being introduced. Ensure your software and processes are compliant before deadlines.
Employment status rules including IR35 and off-payroll working are significant in Aberdeen due to contractor-heavy sectors. For medium and large clients, responsibility for status determinations and tax deductions often sits with the client. Getting status right reduces risk of unexpected tax and penalties.
International and offshore aspects are common. UK statutory residence rules determine UK tax residence. Time spent working on the UK continental shelf can count as UK presence for residence purposes. Special reliefs exist for seafarers working on qualifying ships, but oil platform and certain offshore installation workers are usually outside that relief. Careful analysis is essential.
Scotland also participates in Green Freeport incentives. The North East Scotland Green Freeport offers designated tax sites where special reliefs and business rates benefits may apply, subject to strict geographic and qualifying conditions and time limits. Check whether a site is designated and what reliefs are currently available before relying on them.
You are usually a Scottish taxpayer if your main place of residence is in Scotland for most of the tax year. If you have multiple homes, your closest connection is assessed using statutory tests. Scottish rates apply to your employment, pension, and most trading income, while UK rates still apply to savings and dividend income. HMRC uses your address history and other data to assign the S tax code, but you should tell HMRC if your situation changes.
LBTT is Scotland’s property transaction tax administered by Revenue Scotland. It applies to property in Aberdeen. SDLT applies only in England and Northern Ireland. LBTT has its own rates, thresholds, reliefs, and an Additional Dwelling Supplement for second homes. You must file an LBTT return and pay within the statutory time limit, even if no tax is due.
ADS is generally due when you buy an additional residential property in Scotland and still own your previous main residence at completion. If you replace your main residence and sell the former one within a set period, you may be able to reclaim the ADS. There are strict conditions and deadlines for repayment claims, so act promptly and keep evidence of dates and ownership.
Days spent on the UK continental shelf often count as UK days for residence tests. Seafarers Earnings Deduction generally applies only to crew of qualifying ships and not to workers on offshore installations. Income tax and National Insurance obligations can be complex where duties are split between the UK and overseas. Keep detailed travel and duty logs and seek advice on residence, split-year treatment, and double tax relief.
If you supply services through a personal service company to a medium or large client, the client usually decides status and may operate PAYE if you are deemed inside IR35. For small private sector clients, your company remains responsible under IR35. Oil-and-gas and engineering contractors are frequently affected. Having a robust contract and evidence of working practices is critical.
For the tax year ending 5 April, paper returns are generally due by 31 October and online returns by 31 January. The 31 January deadline is also when any balancing payment and first payment on account are due, with a second payment on account typically due by 31 July. Interest and penalties apply if you file or pay late.
You must register for VAT if your taxable turnover exceeds the current VAT registration threshold in a rolling 12-month period. Most VAT registered businesses must keep digital records and file via compatible software under Making Tax Digital. The threshold and rules can change, so check current figures and ensure your systems are compliant.
Non-domestic rates are billed by Aberdeen City Council. The Scottish Government sets the poundage and any supplements, and reliefs such as the Small Business Bonus Scheme may reduce your bill if you qualify. Rates apply regardless of whether you own or lease the property, so check your lease to see who pays and whether reliefs are available.
Capital Gains Tax may be due on any gain after deducting allowable costs such as acquisition costs, legal fees, and capital improvements. UK residents selling UK residential property generally have to report and pay any CGT within a short time after completion, separate from the annual self assessment return. Principal Private Residence Relief may apply if it was your main home for a period. Keep all records and get advice before completion to avoid missing deadlines.
Most decisions can be challenged by requesting an internal review or by appealing to the First-tier Tribunal Tax Chamber. There are strict time limits, usually 30 days from the date of the decision. Alternative Dispute Resolution can sometimes help resolve matters without a hearing. A lawyer can assess your prospects, build the technical arguments, and represent you through review and tribunal stages.
HM Revenue and Customs for UK-wide taxes, guidance, compliance checks, and appeals information.
Revenue Scotland for Land and Buildings Transaction Tax and Scottish Landfill Tax, including returns, rates, and reliefs.
Scottish Government for Scottish Income Tax policy, non-domestic rates framework, and Green Freeport information.
Aberdeen City Council for Council Tax, non-domestic rates billing, local reliefs, and valuations queries.
First-tier Tribunal Tax Chamber for information on tax appeals procedures and hearing venues in Scotland.
Citizens Advice Scotland for free general guidance on tax and debt issues.
Law Society of Scotland to find a regulated solicitor with tax expertise.
Chartered Institute of Taxation and Association of Taxation Technicians to find a Chartered Tax Adviser or qualified tax technician.
TaxAid and Tax Help for Older People for free help in qualifying low-income cases.
Clarify the problem and gather documents. Collect contracts, payslips, P60 or P45 forms, SA302s and tax calculations, correspondence from HMRC or Revenue Scotland, LBTT returns and completion statements, property purchase and sale documents, and travel logs for offshore or international work.
Check deadlines. Note filing and payment dates for self assessment, LBTT, CGT UK property returns, VAT returns, and appeal windows. Missing a deadline can increase penalties.
Seek qualified advice. Contact a solicitor regulated by the Law Society of Scotland or a Chartered Tax Adviser for tailored guidance. Ask about experience with Scottish Income Tax, LBTT and ADS, energy sector rules, and HMRC disputes.
Assess options. Your adviser can outline the legal position, quantify exposure, and propose routes such as voluntary disclosure, Time To Pay arrangements, internal review, Alternative Dispute Resolution, or tribunal appeal.
Implement and monitor. File accurate returns or amended returns, keep digital records compliant with Making Tax Digital, and diarise future obligations. For property or business changes, obtain pre-transaction advice to prevent issues before they arise.
If your issue involves multiple regimes such as UK-wide and devolved Scottish taxes, ensure your adviser coordinates both so that actions taken for one tax do not create unexpected consequences for another.
