Guide
Business regulations: Scotland vs England differences
Scotland
Scotland has significant regulatory differences from England across licensing, planning, property rates, employment, and tax. If your business operates in both countries — or you are moving a business across the border — you need to understand where the rules diverge.
Alcohol licensing
| None |
|---|
| None |
| None |
| None |
| None |
| None |
| None |
| None |
Planning and building
| None |
|---|
| None |
| None |
| None |
| None |
| None |
Business rates
| None |
|---|
| None |
| None |
| None |
Employment and fair work
- Fair Work First: Scotland requires payment of the real Living Wage (£13.45/hour) for public sector grant recipients. England has no equivalent policy.
- Employment law: Most employment law is reserved to Westminster and applies UK-wide (including NMW, unfair dismissal, TUPE, and equality).
Short-term lets
- Scotland: Mandatory licensing scheme since October 2023 for all short-term lets. Councils can designate control areas requiring planning permission.
- England: No mandatory licensing scheme (as of early 2026). A registration scheme is proposed but not yet implemented.
Tax
- Scottish income tax: Scotland sets its own income tax rates and bands (currently 6 bands vs England's 3). LBTT replaces Stamp Duty Land Tax for property purchases.
- Corporation tax: Reserved to Westminster — same rates apply UK-wide.
- VAT: Reserved to Westminster — same rates and thresholds UK-wide.
Visitor levy
Scotland has enabled councils to levy a charge on overnight stays (Visitor Levy (Scotland) Act 2024). Edinburgh starts July 2026. England has no equivalent power.