HM Insights

Consultation being held on devolved Scottish Taxes Policy Framework

The Scottish Government has launched a consultation on a new approach to the planning, management and implementation of the fully devolved taxes in Scotland.

This is an extension of its commitment to being more open and accessible to Scotland's people than ever before; to give the public information about the decisions it makes; to support people to understand and influence those decisions, and to value and encourage accountability. The Scottish Government has therefore entered into a consultation and feedback is welcomed from all.


Which taxes are devolved?

There are two fully devolved taxes, Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLFT) both of which have been devolved for almost four years now. The devolution of another two taxes is on the horizon, namely Aggregates levy and Air Departure Tax.

Although the rates and bands of income tax are set by the Scottish Government this only covers earned income and the ingathering of the tax is still carried out by H M Revenue & Customs, so that tax is only partially devolved.

Current status

Until now, every change made by Scottish Government to Scottish tax legislation has taken place on a different date in the course of the year. There is no set process surrounding how or when changes take effect.

Why the consultation?

The Budget Process Review Group recommended that further work be undertaken to explore options for an alternative legislative process for devolved taxes legislation, including consideration of whether there is the need for a Finance Bill.

In addition, the expected introduction of further devolution presents an opportunity to draw on experiences since 2015 and allows them to think about how things could be done differently, both in terms of policy and how they engage with people, communities and businesses, while introducing a Framework around the process of legislative change and the timing of it.

The consultation is looking to gather experiences of these devolved taxes and any technical or everyday issues that people want to raise.

It welcomes responses from individuals as well as organisations such as the Law Society of Scotland and professional tax bodies ICAS and CIOT.

How do I add my comments?

Responses are welcomed by 6 June using the Scottish Government’s consultation hub, Citizen Space.

You can access and respond to this consultation online. You can save and return to your responses while the consultation is still open

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