The Smith Commission also said a share of VAT should be assigned to the parliament, and Air Passenger Duty fully devolved.
The commission was set up by Prime Minister David Cameron in the wake of the vote against Scottish independence. Its findings will form the basis of legislation on more Scottish powers.
The Smith Commission, which took forward its recommendations in consultation with the Scottish Parliament's five parties, recommended that:
The parliament should be given the power to set income tax rates and bands on earned income and will retain all of the income tax raised in Scotland. The parliament should be given powers to allow 16 and 17-year-olds to vote in Scottish elections. The parliament should be given powers to create new benefits in devolved areas and make discretionary payments in any area of welfare. A range of other benefits that support older people, carers, disabled people and those who are ill should also be fully devolved. The Scottish government and Scottish Parliament should have a "formal consultative role" in the process of reviewing the BBC Charter.
HMRC Update on devolution of income tax in Scotland
23 December 2014
HMRC have issued a Technical Note confirming proposed amendments to Income Tax rules relating to the introduction of the Scottish Rate of Income Tax.
The Scotland Act 2012 introduced the Scottish rate of income tax, which is expected to be implemented in April 2016.
The Technical Note now issued contains draft amendments to Income Tax rules which are required to implement the Scottish rate. It also sets out:
two areas in which the Government has made minor changes to the approach it set out in the May 2012 Technical Note; and regulations which set out the high level requirement for Scottish employees & pensioners to be made aware of the amount of tax they are paying towards Scottish Government expenditure.
HMRC say that they will continue to consult with employers and pension providers on the specific nature of changes required to the P60.
Scotland Act 2012
22 January 2015
Information regarding the Scotland Act 2012 has now been moved to GOV.UK and contains a useful FAQ on the Scottish rate of income tax. Draft legislation is due to be published later this month. Background The Scotland Act 2012 gives the Scottish Parliament the power to set a Scottish rate of income tax to be administered by HMRC for Scottish taxpayers. It is expected to apply from April 2016.
CIPP Policy News Journal
08/04/2015, Page 459 of 521
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