measure has therefore been included in Finance Bill 2014 (clause 289 and Schedule 34) which makes changes to the structure of the income tax legislation so that subsequent secondary legislation can be made to apply the proposals in the Note in a more straightforward manner. This is described in more detail in a Tax Information and Impact Note . HMRC will consult on the secondary legislation later this year. Scottish rate of income tax – tax relief for pension contributions The Technical Note left open the position with regard to the changes needed to apply the Scottish rate to the Relief at Source process for pensions. As you may have seen, a news item was published by HMRC within their stakeholder update 49 and on their ‘What’s New’ pages in December 2013 setting out the intended way forward. Legislation to put this in place will be included in the wider secondary legislation referred to above. Wales Bill The Wales Bill (published 20 March 2014) will implement key proposals from the Commission on Devolution in Wales (Silk Commission, 1st report). These include the full devolution of Stamp Duty Land Tax and Landfill Tax to Wales and, subject to a referendum, the introduction of a Welsh rate of income tax, structured along the same lines as the Scottish rate. The Wales Bill also includes some changes to the definition of a Scottish taxpayer to ensure that an individual cannot be a Welsh and Scottish taxpayer in the same year. These changes would only come into effect if and when the Welsh rate is introduced. Similar changes to those set out in the Scottish rate Technical Note will need to be made when and if the Welsh rate is introduced - HMRC will consult on these issues at that time but, for simplicity, would anticipate taking the same approach as for Scotland unless there is a strong case for doing something different.
What Scottish Independence could mean for payroll and employers
29 April 2014
The Chartered Institute of Payroll Professionals has today released a report about what Scottish Independence could mean for payroll teams and employers.
With the Scottish referendum approaching this September, the guide looks at the background of the debate along with the potential tax and pensions changes that will need to be implemented by thousands of payroll professionals and employers across the UK.
Diana Bruce, Senior Policy Liaison Officer for the CIPP said
“If the referendum is unsuccessful and independence is not voted for, we will see the devolution of Scottish income tax in 2016. If the votes for independence are in the majority, then we will also see fundamental changes to the Scottish tax system by 2016. So whatever the outcome of the referendum on 18 September 2014, employers and their payroll teams can expect change, and should know what the implications of an independent Scotland could be.”
Read the ‘ Scottish Independence impact on payroll and employers ’ report.
Further devolution powers for Scottish government under a no vote
22 May 2014
A ‘no’ vote in this year’s referendum does not mean ‘no’ to change, says Deputy Prime Minister Nick Clegg.
CIPP Policy News Journal
08/04/2015, Page 455 of 521
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