Outlining the Scottish income tax powers
Scottish tax is on the cusp of change and Scottish taxpayers will see a difference in their personal tax from 2017/18. Joanne Walker explains how Scotland has used its devolved powers to set income tax rates and bands for 2017/18 and how the position of Scottish taxpayers will differ from the rest of the UK.
The devolution of income tax powers to Scotland has happened piecemeal over the past 20 years, but it is suddenly much more visible, because 2017/18 is the first tax year when Scottish income tax powers may make a noticeable difference to Scottish taxpayers.
The current Scottish income tax powers introduced by the Scotland Act 2016 are effectively the third incarnation, following the Scottish variable rate set out by the Scotland Act 1998 and the Scottish rate of income tax provided for by the Scotland Act 2012. Certain important principles for Scottish income tax powers were established by the Scotland Act 1998, and they have been adhered to during later developments.