Income tax in Scotland: using the powers

Author: Nicola Hudson

PDF Published: Thursday 12 Aug 2021 (SB 21-46)

Expand
Overview
Report

Hide

Hide

Overview
Report
- 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
- Executive Summary
- What powers does the Scottish Parliament have in relation to income tax?
- Who pays income tax in Scotland?
- How has the Scottish Government used its income tax powers?
- Impact of the Scottish income tax policy on the Scottish budget
- Impact of the Scottish Government's income tax decisions on individuals and households
- Interaction with tax policy in the rest of the UK
- 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 …

National Audit Office. (2021, January 22). Administration of Scottish income tax 2019-20. Retrieved from https://www.nao.org.uk/report/administration-of-scottish-income-tax-2019-20/

Scottish Fiscal Commission. (2021, January 21). Scotland’s Economic and Fiscal Forecasts. Retrieved from https://www.fiscalcommission.scot/publications/scotlands-economic-and-fiscal-forecasts-january-2021/ [accessed 8 July 2021]

Scottish Government. (2017, November). The Role of Income Tax in Scotland's Budget. Retrieved from https://www.gov.scot/publications/role-income-tax-scotlands-budget/pages/1/ [accessed 27 November 2019]

Scottish Government. (2021, January 28). Scotland's Fiscal Outlook: The Scottish Government's Medium-Term Financial Strategy. Retrieved from https://www.gov.scot/publications/scotlands-fiscal-outlook-scottish-governments-medium-term-financial-strategy/documents/ [accessed 22 July 2021]

Scottish Government. (2018, December 12). Scottish Budget 2019-20. Retrieved from https://www.gov.scot/publications/scottish-budget-2019-20/documents/ [accessed 22 July 2021]

Scottsih Government. (2020, March 3). Scottish Government response to Finance and Constitution Committee 2020-21 budget report. Retrieved from https://archive2021.parliament.scot/S5_Finance/General%20Documents/Report_on_2020_and_21_Scottish_Budget.pdf [accessed 22 July 2021]

Fraser of Allander Institute. (2021, January 25). Budget 2021/22: five things to watch for. Retrieved from https://fraserofallander.org/budget-2021-22-five-things-to-watch-for/ [accessed 20 May 2021]

Scottish Government. (2021). Scottish Budget 2021-22. Retrieved from https://www.gov.scot/publications/scottish-budget-2021-22/ [accessed 20 2021]

HM Government and Scottish Government. (2016, February). The agreement between the Scottish Government and the United Kingdom Government on the Scottish Government’s fiscal framework. Retrieved from https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/503481/fiscal_framework_agreement_25_feb_16_2.pdf [accessed 14 January 2020]

HM Treasury. (2021, July 22). Scottish income tax outturn reconciliation for 2019-20. Retrieved from https://www.gov.uk/government/publications/scottish-income-tax-outturn-reconciliation-for-2019-20/scottish-income-tax-outturn-reconciliation-for-2019-20 [accessed 26 July 2021]

Scottish Government. (2021). Changes to Scottish Income Tax for 2021 to 2022: factsheet. Retrieved from https://www.gov.scot/publications/scottish-income-tax-2021-2022/ [accessed 20 2021]

Fraser of Allander Institute. (2017, September). Scotland’s Budget Report 2017. Retrieved from https://www.sbs.strath.ac.uk/economics/fraser/20170926/Scotlands-Budget-2017.pdf [accessed 27 November 2019]

HM Revenue and Customs. (2021, March 3). Corporation Tax charge and rates from 1 April 2022. Retrieved from https://www.gov.uk/government/publications/corporation-tax-charge-and-rates-from-1-april-2022-and-small-profits-rate-and-marginal-relief-from-1-april-2023/corporation-tax-charge-and-rates-from-1-april-2022-and-small-profits-rate-and-marginal-relief-from-1-april-2023 [accessed 27 July 2021]

Scottish Fiscal Commission. (2018, March 7). How we forecast behavioural responses to income tax policy. Retrieved from https://www.fiscalcommission.scot/publications/how-we-forecast-behavioural-responses-to-income-tax-policy-march-2018/ [accessed 7 July 2021]

Scottish Government. (2020, February). Understanding the Behavioural Effects from Income Tax Changes. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/factsheet/2020/02/scottish-income-tax-2020-2021/documents/scottish-budget-2020-2021-understanding-the-behavioural-effects-from-income-tax-pages/scottish-budget-2020-2021-understanding-the-behavioural-effects-from-income-tax-pages/govscot%3Adocument/Scottish%2BBudget%2B2020-2021%2B-%2Bunderstanding%2Bthe%2Bbehavioural%2Beffects%2Bfrom%2Bincome%2Btax%2Bchanges.pdf [accessed 7 July 2021]

Scottish Government. (2021, March). Scottish Income Tax Ready Reckoners: March 2021. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/factsheet/2021/01/scottish-income-tax-2021-2022/documents/scottish-income-tax-ready-reckoners-march-2021/scottish-income-tax-ready-reckoners-march-2021/govscot%3Adocument/Income%2BTax%2BReady%2BReckoners%2B2021-22.pdf [accessed 8 July 2021]

Scottish Government. (2021, January 28). Scottish Rate Resolution 21-22: motion and explanatory note. Retrieved from https://www.gov.scot/binaries/content/documents/govscot/publications/factsheet/2021/01/scottish-income-tax-2021-2022/documents/scottish-rate-resolution-21-22-motion-and-explanatory-note/scottish-rate-resolution-21-22-motion-and-explanatory-note/govscot%3Adocument/Scottish%2BRate%2BResolution%2B-%2B21-22%2B-%2Bmotion%2Band%2Bexplanatory%2Bnote.pdf?forceDownload=true [accessed 27 2021]

Last Updated: 5/6 6:41am