Scotland

Flower of Scotland

HMRC have published initial detail on the manner in which they will interpret terms used in the sections of the Scotland Act 2012, which set out the definition of a Scottish taxpayer.

The department is seeking views on whether draft technical guidance provides clarity on the principles by which Scottish taxpayer status should be decided. The definition is focused on where the individual lives, not where he or she works.

The planned devolution of tax powers to Scotland could result in a broad swathe of unintended complexities, including forcing many more taxpayers into self assessment, according to the Chartered Institute of Taxation (CIOT).

The rates and bands for residential property transactions subject to the Scottish land and buildings transaction tax have been revised, with an extra level added following advice from tax professionals. The new figures are set to apply from 1 April.

The rates for Scotland’s land and buildings transaction tax (LBTT) have been announced.

Details of the tax – the first to be introduced by Scottish parliament in 300 years – were unveiled in Scotland’s draft Budget for 2015/16.

The future looks complex for taxation in Scotland

Edinburgh took a step closer to operating its own version of HMRC this week, after the Scottish parliament passed the Revenue Scotland and Tax Powers Bill.

The chair of the Chartered Institute of Taxation’s (CIOT) Scottish technical subcommittee, Moira Kelly, welcomed “positive changes” that give Scotland the legal basis for authority over devolved taxes.

Looking ahead to Scotland’s land and buildings transaction tax