Devolved Taxation in Scotland
The Scottish Government has increasing powers to vary tax rates in Scotland. In addition to having full control over local property taxes (Council Tax and Non-Domestic rates), Stamp Duty was transferred to Scotland in 2015/16 and replaced by the Land and Buildings Transaction Tax. From 2016/17 the Scottish Government will gain partial control over income tax in Scotland, including the ability to set the so-called ‘Scottish Rate of Income Tax’ (SRIT). And in the relatively near future, virtually full control over income tax will be devolved to the Scottish Parliament.
This briefing paper, written by David Eiser, Research Fellow in Economics at the University of Stirling and the Centre on Constitutional Change, sets out some of the options for and implications of reforming devolved taxation in Scotland. We hope this paper will inform the debate over how we use taxation powers to address poverty and inequality in Scotland.