Scottish rate of income tax leaves little room for rate change

With six months to go until the rollout of the Scottish rate of income tax (SRIT), it is unlikely any change to the existing rates will be set before the UK's Autumn Statement next month and even if the Scottish government does alter income tax, First Minister Nicola Sturgeon says the new tax powers are 'not progressive'

From April 2016, the Scottish government will have the power to alter the effective rate of income tax by up to 10 pence, but this has to be balanced across the three rates. This means that the tax rates can only be raised upwards or downwards across all three rates.

The Scottish government is expected to announce the proposed SRIT for the tax year 2016-17 in its autumn 2015 draft budget.

A date for the budget presentation to the Scottish parliament by finance minister John Swinney has not been announced, although it is likely to be presented within a week to 10 days of the UK Autumn Statement by Chancellor George Osborne, which is scheduled for 25 November.

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