Legal News

Exploring Scotland’s new devolved tax powers

Published on: 27 March 2017
Published by: LexisPSL
  • Exploring Scotland’s new devolved tax powers
  • Original news
  • What are the Scottish parliament’s powers in relation to Income Tax?
  • Does the Scottish rate resolution need to be enshrined in law or is the decision in Parliament sufficient?
  • What is the effect of the Scottish rate resolution for 2017–18?
  • The Draft Budget gave a commitment to freeze rates for the whole parliament and only to increase thresholds by Consumer Price Index. Does that commitment still stand and would we expect to see that enshrined in law?
  • What will employers need to consider regarding the difference in thresholds between Scotland and the rest of the UK?
  • Who is responsible for identifying who are Scottish taxpayers?
  • What is the position if the employer is based in England and the employee works part of the week in Scotland and part of the week in England?

Article summary

Tax analysis: Ronnie Brown, partner at Burness Paull LLP, outlines Scottish Parliament’s powers to determines income tax rates for Scottish taxpayers, and says that companies will need to be aware of employees residing outside Scotland that are subject to Scottish income tax and ensure their payroll systems accommodate this difference in income tax withholdings or take a trial to read the full analysis.

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