TaxCorporate TaxScottish corporation tax remains a possibility

Scottish corporation tax remains a possibility

The chancellor announced new financial powers for Scotland, with an indication more may yet follow

CHANCELLOR GEORGE OSBORNE indicated that Scotland could be given greater financial powers, raising the possibility of Holyrood being able to set its own corporation tax.

Osborne detailed new rules in a speech to Parliament yesterday that will allow the Scottish government to borrow money for national infrastructure projects, issue government bonds and use borrowings to cover cash shortfalls. He also indicated that Scotland could be granted even more powers in the future, suggesting there is still a chance that Scotland will see devolved corporate tax rate setting powers.

The rules announced yesterday are seen the largest transfer of financial and spending responsibilities between the UK and Scotland since the signing of the Act of Union in 1707. It is thought that the measures in the Scotland Bill as a whole will be worth £12bn more spending power for Scotland.

The measures already announced include allowing the Scottish government to alter national excise duties and change the personal income tax rate by 2%.

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