Scotland in the United Kingdom: An enduring settlement
LITRG has responded to a UK Government consultation on draft clauses for the Scotland Bill 2015. In our response we concentrate on Parts 2 and 3 of the draft Scotland Bill 2015, given our concern with tax and the interaction of the tax, tax credits and welfare systems. We emphasise that the devolution of tax and welfare powers should be based on sound principles, and that it is necessary to take a holistic view of the tax and welfare systems.
LITRG points out that in devolving further tax and welfare powers, it is essential to keep the taxpayer and claimant in mind. It should be straightforward for taxpayers and benefits claimants to deal with the tax and benefits systems. This is an area of particular concern, since the devolution of income tax means that Scottish taxpayers may face a more complex system than taxpayers in the rest of the UK. We therefore welcome the fact that HMRC will continue to administer all income tax, both UK and Scottish, meaning that individuals will only have to deal with one tax authority in respect of their income tax affairs.
The LITRG response can be found here.