PolicyEngine · vahid-ahmadi · Jan 20, 2026 · Jan 19, 2026 · Jan 20, 2026
diff --git a/changelog_entry.yaml b/changelog_entry.yaml
@@ -0,0 +1,4 @@
+- bump: patch
+  changes:
+    fixed:
+      - Add 2026-27 Scottish income tax threshold freeze to baseline (higher, advanced, and top rates) per Scottish Budget 2025-26.
diff --git a/policyengine_uk/parameters/gov/hmrc/fuel_duty/calculate_fuel_duty_rates.py b/policyengine_uk/parameters/gov/hmrc/fuel_duty/calculate_fuel_duty_rates.py
@@ -18,7 +18,6 @@
 
 import yaml
 
-
 # Years to calculate rates for
 CALCULATION_YEARS = range(2026, 2031)
 

diff --git a/policyengine_uk/parameters/gov/hmrc/income_tax/rates/scotland/rates.yaml b/policyengine_uk/parameters/gov/hmrc/income_tax/rates/scotland/rates.yaml
@@ -45,6 +45,8 @@ brackets:
         2023-04-06: 31_092
         2024-04-06: 31_092
         2025-04-06: 31_092
+        # Scottish Budget 2025-26 announced freeze through 2026-27
+        2026-04-06: 31_092
       metadata:
         uprating: gov.economic_assumptions.indices.obr.consumer_price_index
     rate:
@@ -57,6 +59,8 @@ brackets:
         2023-04-06: 125_140
         2024-04-06: 62_430
         2025-04-06: 62_430
+        # Scottish Budget 2025-26 announced freeze through 2026-27
+        2026-04-06: 62_430
       metadata:
         uprating: gov.economic_assumptions.indices.obr.consumer_price_index
     rate:
@@ -69,6 +73,8 @@ brackets:
         2017-04-06: null
         2024-04-06: 125_140
         2025-04-06: 125_140
+        # Scottish Budget 2025-26 announced freeze through 2026-27
+        2026-04-06: 125_140
       metadata:
         uprating: gov.economic_assumptions.indices.obr.consumer_price_index
     rate:
@@ -81,3 +87,5 @@ metadata:
   reference:
     - title: GOV.UK
       href: https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past
+    - title: Scottish Budget 2025-26 - Higher rate threshold freeze
+      href: https://www.gov.scot/publications/scottish-budget-2025-26/
diff --git a/policyengine_uk/tests/microsimulation/test_reform_impacts.py b/policyengine_uk/tests/microsimulation/test_reform_impacts.py
@@ -8,7 +8,6 @@
 from pathlib import Path
 from policyengine_uk import Microsimulation
 
-
 # Load configuration from YAML file
 config_path = Path(__file__).parent / "reforms_config.yaml"
 with open(config_path, "r") as f:

diff --git a/policyengine_uk/tests/microsimulation/test_salary_sacrifice_cap_reform.py b/policyengine_uk/tests/microsimulation/test_salary_sacrifice_cap_reform.py
@@ -20,7 +20,6 @@
 import pandas as pd
 from policyengine_uk import Microsimulation
 
-
 # Policy year when the salary sacrifice cap takes effect
 POLICY_YEAR = 2030  # Use 2030 to ensure cap is active (cap starts 2029-04-06)
 

diff --git a/policyengine_uk/tests/test_behavioral_responses.py b/policyengine_uk/tests/test_behavioral_responses.py
@@ -16,7 +16,6 @@
 from policyengine_uk import Microsimulation
 from policyengine_uk.model_api import Scenario
 
-
 # Check if HF token is available for data-dependent tests
 HF_TOKEN_AVAILABLE = bool(os.environ.get("HUGGING_FACE_TOKEN"))
 requires_hf_data = pytest.mark.skipif(

diff --git a/policyengine_uk/utils/dependencies.py b/policyengine_uk/utils/dependencies.py
@@ -179,14 +179,12 @@ def create_waterfall_change_chart(
 
 
 def add_fonts():
-    fonts = HTML(
-        """
+    fonts = HTML("""
     <link rel="preconnect" href="https://fonts.googleapis.com">
     <link rel="preconnect" href="https://fonts.gstatic.com" crossorigin>
     <link href="https://fonts.googleapis.com/css2?family=Roboto+Serif:ital,opsz,wght@0,8..144,100..900;1,8..144,100..900&display=swap" rel="stylesheet">
     <link href="https://fonts.googleapis.com/css2?family=Roboto+Mono:ital,wght@0,100..700;1,100..700&display=swap" rel="stylesheet">
-    """
-    )
+    """)
     return display_html(fonts)
 
 

diff --git a/policyengine_uk/variables/gov/hmrc/fuel_duty/fuel_duty.py b/policyengine_uk/variables/gov/hmrc/fuel_duty/fuel_duty.py
@@ -1,6 +1,5 @@
 from policyengine_uk.model_api import *
 
-
 STATUTORY_CONSUMER_INCIDENCE = 0.5
 ECONOMIC_CONSUMER_INCIDENCE = 1
 

diff --git a/policyengine_uk/variables/gov/hmrc/income_tax/reliefs/loss_relief.py b/policyengine_uk/variables/gov/hmrc/income_tax/reliefs/loss_relief.py
@@ -1,6 +1,5 @@
 from policyengine_uk.model_api import *
 
-
 """
 The section detailing some tax reliefs applicable is section 24 of the Act, but others are described in the 2003 and 2005 Acts as deductions from the respective components.
 """
Original file line number	Diff line number	Diff line change
Expand Up		@@ -18,7 +18,6 @@

		import yaml


		# Years to calculate rates for
		CALCULATION_YEARS = range(2026, 2031)

Expand Down