Ahead of the Scottish parliamentary elections on 6 May, the Scottish political parties have published detailed manifesto commitments. Proposals for tax include the following:
SNP: Scottish income tax rates will be frozen for five years with thresholds increased by no more than inflation. The land and buildings transaction tax (LBTT) additional dwelling supplement will be reviewed. The SNP will also review the business rates system in Scotland, committing to retain the small business bonus scheme and considering higher charges for companies registered in tax havens. The SNP will run annual citizens’ assemblies to discuss council tax reform and tax policy in general. Various plans would only come into play following Scottish independence, including proposals to transform North Sea oil and gas to carbon net zero.
Conservatives: The income tax burden in Scotland will be brought in line with the rest of the UK. The LBTT nil-rate band will be increased permanently to £250,000 and additional dwelling supplement will be reviewed. The Conservatives would conduct a wide review of business rates and provide a number of discounts and exemptions, particularly for town-centre businesses, and would retain the small business bonus scheme.
Labour: Any income tax changes will only affect individuals earning over £100,000 a year. On business rates, Labour proposes reductions for high-street businesses and increases for large retail warehouses, with a taskforce set up to consider options for online retailers. Labour would replace council tax with an alternative based on ‘property values and ability to pay’ and wants to ensure those companies which have profited during the pandemic contribute towards the recovery.
Scottish Greens: Income tax rates (and presumably bands) will be frozen ‘for the majority’ while looking to increase the tax burden on the most wealthy. The Greens would call for a windfall tax on businesses which have made additional profits during the pandemic and would establish a citizens’ assembly on taxation to engage public support for raising funds to invest in public services. Other plans include a wealth tax, and taxes on luxury goods and carbon emissions which would become possible after Scottish independence, which the Greens support.
Lib Dems: No significant changes are proposed to income tax rates and bands. The Lib Dems will look to replace the council tax system, decentralising powers over both council tax and business rates to local councils. More robust scrutiny of the Budget will ensure any emerging underspends are used for public benefit.
Ahead of the Scottish parliamentary elections on 6 May, the Scottish political parties have published detailed manifesto commitments. Proposals for tax include the following:
SNP: Scottish income tax rates will be frozen for five years with thresholds increased by no more than inflation. The land and buildings transaction tax (LBTT) additional dwelling supplement will be reviewed. The SNP will also review the business rates system in Scotland, committing to retain the small business bonus scheme and considering higher charges for companies registered in tax havens. The SNP will run annual citizens’ assemblies to discuss council tax reform and tax policy in general. Various plans would only come into play following Scottish independence, including proposals to transform North Sea oil and gas to carbon net zero.
Conservatives: The income tax burden in Scotland will be brought in line with the rest of the UK. The LBTT nil-rate band will be increased permanently to £250,000 and additional dwelling supplement will be reviewed. The Conservatives would conduct a wide review of business rates and provide a number of discounts and exemptions, particularly for town-centre businesses, and would retain the small business bonus scheme.
Labour: Any income tax changes will only affect individuals earning over £100,000 a year. On business rates, Labour proposes reductions for high-street businesses and increases for large retail warehouses, with a taskforce set up to consider options for online retailers. Labour would replace council tax with an alternative based on ‘property values and ability to pay’ and wants to ensure those companies which have profited during the pandemic contribute towards the recovery.
Scottish Greens: Income tax rates (and presumably bands) will be frozen ‘for the majority’ while looking to increase the tax burden on the most wealthy. The Greens would call for a windfall tax on businesses which have made additional profits during the pandemic and would establish a citizens’ assembly on taxation to engage public support for raising funds to invest in public services. Other plans include a wealth tax, and taxes on luxury goods and carbon emissions which would become possible after Scottish independence, which the Greens support.
Lib Dems: No significant changes are proposed to income tax rates and bands. The Lib Dems will look to replace the council tax system, decentralising powers over both council tax and business rates to local councils. More robust scrutiny of the Budget will ensure any emerging underspends are used for public benefit.
