Limited powers to set a variable income tax rate means that the Scottish government's hands are tied until they are given extended powers under revisions to the Scotland Bill. Real movement on the Scottish Rate of Income Tax (SRIT) is likely to come in 2017, says Bill Dodwell, head of tax policy at Deloitte
Scottish finance minister John Swinney delivered his Budget on 16 December – and made the first income tax announcement of the modern era.
The Scottish Rate of Income Tax (SRIT) will be 10 pence from April 2016 – meaning that Scottish taxpayers will have the same rates of income tax as those in the rest of the UK. However, the minister said ,the income tax powers we currently have do not allow us to make income tax fairer’, which is no doubt a hint that, if re-elected in 2016, a different approach may be taken when control over both thresholds and rates passes to Scotland.
The Scottish Parliament Information Centre (SPICe) recently published some data about the 2.5m Scottish income taxpayers. Virtually all their income tax liabilities will be set by the Scottish parliament – once it controls thresholds and rates.
