Scottish taxes

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A bill which will provide Scotland with its first tax collection system in 300 years was passed by the Scottish Parliament this week report Harris & Co accountants Northampton  

The Revenue Scotland and Tax Powers Bill establishes Revenue Scotland as a new body responsible for collecting and managing devolved taxes and was approved by the Holyrood parliament on 19 August.

The final Bill, which underwent many amendments in the second and third stages of its progress, was passed without division.

As a result, taxes on transfers of land and on disposals to landfill are being devolved, so stamp duty land tax will cease to have effect in Scotland and will be replaced by Land and Buildings Transaction Tax from 1 April 2015. The UK landfill tax will be replaced by Scottish Landfill Tax, again with effect from 1 April 2015.

Charlotte Barbour, ICAS head of taxation (private clients and small business), said:

‘ICAS is pleased to have been involved in this process and welcomes the consultative approach adopted by the Scottish Government and Scottish Parliament throughout the legislation’s passage.’

Scottish Finance Secretary John Swinney said:

‘This Bill is an important milestone which provides an opportunity to put in place a distinctive Scottish approach to taxation founded on Adam Smith"s four principles — that taxes should be proportionate to the ability to pay, that there must be certainty, convenience for the taxpayer and efficiency.’

‘I am determined that Revenue Scotland will combat tax avoidance as vigorously and effectively as possible, and the Bill contains a wide-ranging General Anti-Avoidance Rule (GAAR) which will allow Revenue Scotland to take robust counteraction against artificial tax avoidance schemes — not just the most abusive end of the spectrum.’

The Bill will now go forward for Royal Assent.

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