Income Tax in Scotland: 2017 update

Author: Anouk Berthier and Nicola Hudson

PDF Published: Wednesday 06 Dec 2017 (SB 17-84)

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Overview
Report

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Overview
Report
- Executive Summary
- What is income tax?
- Scottish income tax: Legislative framework
- "Scottish taxpayers"
- Facts and figures
  - Scottish income tax policy 2017-18
  - Taxpayers in Scotland in 2017-18
  - Taxpayers by income bracket, 2014-15
  - Gender breakdown
  - Local authority breakdown
  - Relationship between total income taxpayers and NSND income taxpayers (higher and additional)
  - Analysis of NSND additional rate taxpayers in Scotland, 2014-15
  - Scottish income tax revenue 2016-17 to 2022-23
- HMRC, auditing and costs of implementation
- Interaction with other parts of the UK tax system
  - Savings and dividends
  - Capital Gains Tax
  - National Insurance Contributions
  - Pensions
  - Marriage Allowance
- Past and potential issues with income tax in Scotland
  - Taxpayer identification
  - Tax avoidance/evasion
- Behavioural responses
  - Types of responses
  - Measuring behavioural responses
  - The fiscal framework and behavioural responses
  - Case study: the 50p additional rate
  - A 50p additional rate in Scotland?
- Block grant adjustment
  - Adjustment to the block grant in 2016-17
  - The fiscal framework and block grant adjustment
  - Role of the Scottish Government/Scottish Fiscal Commission and OBR in forecasting Scottish income tax
  - Block grant adjustment for 2017-18
- How much revenue could alternative proposals raise?
  - The baseline
  - Modelling revenues
  - Income tax revenue estimates
  - Behavioural responses to tax changes
- Further sources of information
- Annex 1: Taxable and non-taxable benefits
- Annex 2: Case study of behavioural responses: Switzerland
- Annex 3: SPICe approach to modelling income tax revenues
- Annex 4: Impact of selected scenarios on average household income tax by income decile
- Executive Summary
- What is income tax?
- Scottish income tax: Legislative framework
- "Scottish taxpayers"
- Facts and figures
- HMRC, auditing and costs of implementation
- Interaction with other parts of the UK tax system
- Past and potential issues with income tax in Scotland
- Behavioural responses
- Block grant adjustment
- How much revenue could alternative proposals raise?
- Further sources of information
- Annex 1: Taxable and non-taxable benefits
- Annex 2: Case study of behavioural responses: Switzerland
- Annex 3: SPICe approach to modelling income tax revenues
- Annex 4: Impact of selected scenarios on average household income tax by income decile
Sources

Image: Figure 1: Share of taxpayers by highest marginal rate, Scotland and UK as a whole, 2017-18 …

Image: Figure 2: Share of taxpayers (numbers) by income bracket (lower limit), Scotland and UK, 2014-15 …

Image: Figure 3: Share of taxpayers' total income by income bracket (lower limit), Scotland and UK, 2014-15 …

Image: Figure 4: Share of taxpayers' income tax by income bracket (lower limit), Scotland and UK, 2014-15 …

Image: Figure 5: Proportion of taxpayers who are male/female (number of taxpayers) by type of income, Scotland, 2014-15 …

Image: Figure 6: Proportion of taxpayers' income held by males/females, Scotland, 2014-15 …

Image: Figure 7: Mean income tax by local authority relative to Scottish average, 2014-15 …

Image: Figure 8: Share of income tax by local authority, Scotland, 2014-15 …

Image: Figure 9: Taxpayers by type at the higher and additional rates, Scotland, 2014-15 …

Image: Figure 10: Distribution of NSND additional rate taxpayers (numbers and income tax) by industry, 2014-15 …

Image: Figure 11: Distribution of NSND additional rate taxpayers (numbers) by industry and gender, 2014-15 …

Image: Figure 12: Scottish NSND income tax, 2016-17 to 2022-23 …

Image: Figure 13: Annual NSND income tax growth, Scotland and rUK, 2016-17 to 2022-23 …

Image: Figure 14: Average change in tax by household and income decile, increase basic rate by 1p …

Image: Figure 15: Average change in tax by household and income decile, increase all rates by 1p …

Image: Figure 16: Average change in tax by household and income decile, introducing a new zero rate band of £1,000 above personal allowance …

Image: Figure 17: Average change in tax by household and income decile, 11 bands …

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Last Updated: 18/3 1:15am