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Published by The Scottish Parliamentary Corporate Body
Income tax in Scotland: using the powers
Author: Nicola Hudson
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Published: Thursday 12 Aug 2021 (SB 21-46)
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Executive Summary
What powers does the Scottish Parliament have in relation to income tax?
The Scottish Variable Rate
The Scottish Rate of Income Tax (SRIT)
Scottish Income Tax
Reserved powers in respect of income tax
Who pays income tax in Scotland?
Defining Scottish taxpayers
Characteristics of Scottish taxpayers
How has the Scottish Government used its income tax powers?
The Scottish Government's approach to taxation
Changes to income tax policy by the Scottish Government
2017-18 budget
2018-19 budget
2019-20 budget
2020-21 budget
2021-22 budget
Impact of the Scottish income tax policy on the Scottish budget
Impact of the Scottish Government's income tax decisions on individuals and households
Impact on individuals
Impact on households
Interaction with tax policy in the rest of the UK
National Insurance Contributions
Taxation of savings, dividends and capital gains
Corporation tax
Behavioural responses to income tax policy
Ready reckoners for income tax
Scottish Parliament procedure in relation to income tax
Sources
Image: Figure 1: Devolution of NSND income tax powers
Image: Figure 2: Distribution of taxpayers, 2021-22
Image: Figure 8: Determinants of the Scottish budget
Image: Figure 9: Difference in income tax payable by level of earnings, Scotland and rUK, 2021-22
Image: Figure 10: Impact on Scottish households of Scottish income tax policy, 2021-22
Image: Figure 11: Income tax and NICs in Scotland and rUK, 2021-22
Image: Figure 3: 2017-18 income tax policies compared
Image: Figure 4: 2018-19 income tax policies compared
Image: Figure 5: 2019-20 income tax policies compared
Image: Figure 6: 2020-21 income tax policies compared
Image: Figure 7: 2021-22 income tax policies compared
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