Tax advisers have warned that despite Scotland voting ‘no’ in its historic referendum for independence last week, ‘don’t underestimate how much Scottish taxes are going to change regardless of the “no” vote’. PwC head of tax Kevin Nicholson said: ‘The Scotland Act will have a big impact on many people and businesses on both sides of the border, which many have underestimated. For instance, different income tax rates could affect where people choose to live or work. People buying property in Scotland will find a progressive land and buildings transaction tax (LBTT), instead of the usual stamp duty.’
The CIOT said politicians must confront the crucial question of how much tax competition they are willing to entertain within the UK. Moira Kelly, chair of the CIOT’s Scottish technical sub-committee, said: ‘The political convention provides an opportunity for Scotland and the UK to address what can be done with taxation in terms of devolution, and how differential tax rates, thresholds and allowances will affect the operational make-up of the UK economy.’
Ronnie Ludwig (Saffery Champness) said: ‘Things will certainly be simpler than if it had been yes, but given the devolution process in motion we are set for a great deal of change in the Scottish tax system. So many of the people that I deal with have lives and businesses which span Hadrian’s Wall, and this will certainly not be straightforward. If Scotland's income tax rate [expected in 2016] ends up differing considerably from the rest of the UK, we may see people moving or rearranging their business affairs.’
Meanwhile, Chris Groves (Withers) commented: ‘Any relief felt as a result of last week’s news may sadly be temporary. The devolution of tax powers to Scotland are likely to lead it down a similar, if less dramatic, path as full independence. Whilst we should be glad that the immense potential upheaval of Scottish independence has been averted, individuals with assets in Scotland would be well advised to keep a close watch on changes to property and tax rules.’
Tax advisers have warned that despite Scotland voting ‘no’ in its historic referendum for independence last week, ‘don’t underestimate how much Scottish taxes are going to change regardless of the “no” vote’. PwC head of tax Kevin Nicholson said: ‘The Scotland Act will have a big impact on many people and businesses on both sides of the border, which many have underestimated. For instance, different income tax rates could affect where people choose to live or work. People buying property in Scotland will find a progressive land and buildings transaction tax (LBTT), instead of the usual stamp duty.’
The CIOT said politicians must confront the crucial question of how much tax competition they are willing to entertain within the UK. Moira Kelly, chair of the CIOT’s Scottish technical sub-committee, said: ‘The political convention provides an opportunity for Scotland and the UK to address what can be done with taxation in terms of devolution, and how differential tax rates, thresholds and allowances will affect the operational make-up of the UK economy.’
Ronnie Ludwig (Saffery Champness) said: ‘Things will certainly be simpler than if it had been yes, but given the devolution process in motion we are set for a great deal of change in the Scottish tax system. So many of the people that I deal with have lives and businesses which span Hadrian’s Wall, and this will certainly not be straightforward. If Scotland's income tax rate [expected in 2016] ends up differing considerably from the rest of the UK, we may see people moving or rearranging their business affairs.’
Meanwhile, Chris Groves (Withers) commented: ‘Any relief felt as a result of last week’s news may sadly be temporary. The devolution of tax powers to Scotland are likely to lead it down a similar, if less dramatic, path as full independence. Whilst we should be glad that the immense potential upheaval of Scottish independence has been averted, individuals with assets in Scotland would be well advised to keep a close watch on changes to property and tax rules.’
