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Scotland should set own tax rates, says Smith Commission

The Smith Commission, the body responsible for investigating devolution, feels that parliament north of the border should set Scottish income bands and tax rates.

The commission, which David Cameron established after the referendum for Scottish independence, also suggested that Edinburgh be granted a VAT share, along with full Air Passenger Duty devolution.

Scotland is in a position to be granted powers in 2016 to modify the basic income tax rate, as well as taking control of a number of minor taxes, including stamp duty, as part of the Scotland Act 2012.

The Institute of Chartered Accountants of Scotland approved of the suggestion and complimented Lord Smith on making bold moves with the proposals he has made.

Elspeth Orcharton, who is the taxation director for the Institute, commented:

“The devolution of income tax rates and bands delivers an intelligent political result, balancing the vow to deliver greater control and accountability to Scotland, while remaining part of the United Kingdom. It requires the respective governments to consider for the first time the economic and budget mechanisms involved in such a significant transfer of powers.”

Whatever the outcome in Scotland, HMRC still reigns supreme in England – everywhere from the Wirral to Woking. The body hasn’t been shy of late when it comes to exercising its power, with a clampdown on tax avoidance ongoing. Businesses would do well to bear that in mind and use an accountant in the Wirral, and elsewhere across the country, to keep their records in good shape.

Posted by Mark
December 10, 2014

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