Save content
Have you found this content useful? Use the button above to save it to your profile.

CIOT welcomes Scotland’s tax devolution Bill

1st Sep 2014
Save content
Have you found this content useful? Use the button above to save it to your profile.

The Chartered Institute of Taxation has welcomed the passing of the Revenue Scotland and Tax Powers Bill, which changes the tax landscape regardless of the outcome of the independence referendum.

Moira Kelly, chair of the CIOT’s Scottish technical subcommittee, noted that, while “all eyes are fixed” on the outcome of the referendum on 18 September, Scotland’s tax landscape has now changed permanently regardless of the vote.

The Bill establishes Revenue Scotland, the tax authority responsible for collecting devolved taxes from April 2015, and provides for the establishment of Scottish tax tribunals.

It introduces a general anti-avoidance rule (GAAR) to enable Revenue Scotland to counteract tax advantages in relation to the devolved taxes that arise from “tax avoidance schemes that are artificial”.

Finance secretary John Swinney said he was determined that Revenue Scotland “will combat tax avoidance as vigorously and effectively as possible”. The “wide-ranging” GAAR “will allow Revenue Scotland to take robust counteraction against artificial tax avoidance schemes – not just the most abusive end of the spectrum”.

Guidance on the scope of the rule is set out in an explanatory note prepared by the Scottish government and updated on 13 August.

The Bill, passed by the Scottish Parliament on 19 August, will be submitted for Royal Assent in due course. Once it has received Royal Assent it will become an Act of the Scottish Parliament.

“Scotland now has its own tax authority, firmly established in law,” Moira Kelly said.

Landfill tax will be devolved to Scotland, and a new land and buildings transaction tax will replace stamp duty land tax, from April 2015. New Scottish rates of income tax are expected to commence in April 2016.

Kelly added that, while some positive changes were made during the passage of the Bill, some disappointments remained “including a lack of detail on the rights, duties and obligations of agents and advisers”.

Last month the Scottish government claimed that under an independent Scotland a 3% cut in the headline rate of corporation tax, proposed “in part to resist the gravitational pull of London”, could “boost employment by 27,000 jobs” in the long term.

Replies (15)

Please login or register to join the discussion.

Red Leader
By Red Leader
01st Sep 2014 12:25


What is the picture of? The number of seats is too few to be the Scottish Parliament.

Thanks (1)
Replying to VIOLA55:
By Mickyboy
03rd Sep 2014 12:16


the Public Audit Committee


Thanks (0)
Andrew Goodall
By Andrew Goodall
01st Sep 2014 12:45


I believe this is one of the committee rooms.

Thanks (1)
By johnjenkins
01st Sep 2014 15:37


when the picture is talked about more than the substance.

Thanks (0)
By ireallyshouldknowthisbut
02nd Sep 2014 09:25


Ah a Corp tax rate price war. Just what we don't need. 

What ever happened to good old fashioned transfer pricing rules, and you tax what is earned in the country, end of. 

Thanks (0)
By johnjenkins
02nd Sep 2014 09:36

Now if the

corp tax is right how many will move from Southern Ireland and other exotic places. Who needs oil?

Thanks (0)
By Trethi Teg
02nd Sep 2014 09:47

Hopefully the Scots will go their own way. I am tired of listening to the debate. They have, given the size of the population, had an undue influence over the affairs of the rest of the UK for the last 20 years.

The result will be an economic disaster, but that is their problem.

With regard to tax on the one hand they wish to cut the rate of CT, but will have to pay for it in other ways i.e. increased taxation elsewhere.

The thought that any substantial business in their right mind would relocate to a socialist Scotland to save a few shillings in CT is laughable.

Other good news is that we would at least be able to maintain "summer time" without worrying about a couple of hundred people on the islands.

*Comment removed by moderator*


Thanks (0)
John Stokdyk, AccountingWEB head of insight
By John Stokdyk
02nd Sep 2014 15:04

Can we keep the conversation professional and polite, please?

While we appreciate robust debate, I fear that simmering resentments may have got the better of you, Trethi.

Please remember that accountants will be more interested in the taxation arrangements discussed here (which will apply whichever way the Scots vote) than pro- or anti-independence propaganda, which we can get plenty of elsewhere.

I would appreciate it if you would reconsider your final comment. 

And while you're dismissing a "couple of hundred people" on the islands, there are getting on for 100,000, some of whom are members of AccountingWEB. Please treat them with the respect you would any other fellow professional.

Thanks (10)
By Ruddles
02nd Sep 2014 15:46

Thank you, John

As someone that has made my voting intention clear, I would certainly agree with the sentiment that certain Scots do have an inflated opinion of themselves (but the same can be said of certain individuals of any nationality - and, yes, I include both English and Welsh in that). But to take such a broad swipe at the entire population of a nation is offensive and unprofessional (and bordering on racist) in the extreme and has no place on a forum like this.

As for the closing remarks above, well they really don't deserve comment and I hope that Trethi Teg will see the error of his (or her) ways and retract them.

I'm all for sticking with the Union, but if Trethi Teg's remarks were indicative of the general attitude of the Welsh, perhaps we would be encouraging them to have their own referendum. (Though in all honesty, knowing many Welshmen as I do, I can vouch that the above remarks would appear be far from representative of our Celtic cousins.)

Thanks (2)
By taxinfo
03rd Sep 2014 12:24

what of UK advisors with clients in Scotland?

So those of us with personal and corporate in Scotland will have to learn about and apply Scottish tax rates and rules throughout.

Also all tax software will - I assume - have to be upgraded to have options applying a "Scottish" tax calculation or "non Scottish".

I can't see canny Scottish clients liking or agreeing to increased professional fees to cope with all this.

Thanks (0)
Replying to memyself-eye:
By Helen Crowley
03rd Sep 2014 15:59

Scottish advisers with clients all over the UK

Works both ways!


Thanks (0)
By North East Accountant
04th Sep 2014 09:35

i'm being selfish

On a purely selfish basis I hope they stay in. Tax rules are changing on a daily basis, new FRSME and FRS 102 etc to get to grips with, EU generating stupid new rules left right and centre (vacuum cleaners etc). Do we need another bunch of politicians introducing tons of new laws on our doorstep which will effect us all and be another nightmare for a small business to deal with. Imagine many of our small clients who deal with the present UK having to deal with a new Scottish foreign currency eg. The Haggis Pound in their books.

Apart from possibly having to deal with Revenue Scotland for Txa and VAT as well as HMRC.
A total nightmare awaits, following a Yes vote.

Thanks (0)
By taxinfo
04th Sep 2014 10:02

nightmare is coming.....

....yes vote or not!

Thanks (0)
By Trethi Teg
08th Sep 2014 15:23

Things are looking up!

*comment removed by moderator*

To keep it on a "professional" basis, the advantages as I perceive it from the accountants point of view (based in England and Wales) of independence are: -

More business for us south of the border as businesses flee a high tax socialist economy which will be inevitable once the north sea oil chickens come home to roost.

Lower taxes on our own profits by not having to pay extra taxes to subsidise those north of the border following the above.

A much better chance of a Tory Government in Westminster which, on balance, is better for us professionals.

Not having to deal with the Scottish HMRC call centre's which are undoubtedly the most difficult call centres to deal with.


The disadvantages as I see them are: -

???? - None

Thanks (0)
By johnjenkins
08th Sep 2014 16:15

@ Trethi Teg

I'm sure you don't mean that we will pay less tax, but perhaps that might be a ploy the Tories could use if they want a chance of winning the next election.

Couldn't we swap EU membership with Scotland,then we could close all our borders and leave the French to sort out THEIR illegals mess.

Thanks (0)