The CIOT has pointed out that a potential March 2021 UK Budget and the expected dissolution of the Scottish Parliament ahead of its May 2021 elections, will leave very little time for MSPs to agree on Scotland’s taxes for 2021 if last-minute changes are needed. While MSPs could use estimates to agree on a budget, as they did earlier this year, the difficulty arises if there are significant changes to the UK tax system that have a knock-on effect on the amount of money available to the Scottish Parliament.
Advance notice of changes to both the budget date or potential tax changes would help the devolved governments to better prepare to set their own budgets and operate their tax systems more effectively, says the CIOT.
The CIOT has pointed out that a potential March 2021 UK Budget and the expected dissolution of the Scottish Parliament ahead of its May 2021 elections, will leave very little time for MSPs to agree on Scotland’s taxes for 2021 if last-minute changes are needed. While MSPs could use estimates to agree on a budget, as they did earlier this year, the difficulty arises if there are significant changes to the UK tax system that have a knock-on effect on the amount of money available to the Scottish Parliament.
Advance notice of changes to both the budget date or potential tax changes would help the devolved governments to better prepare to set their own budgets and operate their tax systems more effectively, says the CIOT.
