Most council taxpayers would be better off under SNP's proposal for a 3p in the pound local income tax, finance secretary John Swinney claimed today as he launched a four-month consultation on the proposal.

The Scottish government's plans would involve a tax-free personal allowance, which matches the UK personal allowance; exemptions for savings and investments; and a separate tax on second homes, The Scotsman reports.

Swinney said the council tax was unfair, regressive and penalised people on low incomes. ‘The proposal to scrap the council tax and replace it with a local income tax represents the most progressive overhaul of Scottish taxation in years and real help for hard-pressed taxpayers,’ he said.

He said he could see no reason why HM Revenue & Customs should not collect the tax, but other options were available if necessary, including a Scottish collection agency.

Further reading:

SNP courts Lib Dems in bid to secure local tax

UK thwarts Scotland’s plan to scrap council tax

Read story in The Scotsman