Scottish parliament to discuss tax powers

A TRANSFER OF TAX POWERS is set to be discussed in Scottish parliament after devolution of tax rights was included in the Scotland Act earlier this year.

The Finance Committee is to examine the implementation of a Scottish rate of income tax, borrowing powers and taxes on landfill and property transactions.

Finance secretary John Swinney (pictured) is expected to use the meeting as an opportunity to update the committee on plans for a new tax system, reports the Press Association.

Swinney announced in June that Holyrood will set up its own tax agency called Revenue Scotland after HM Revenue & Customs warned it had no obligation to enact taxes levied from Edinburgh if they deviated too greatly from taxes in the rest of the UK.

Holyrood has already consulted on proposals for a land and buildings transaction tax, with a landfill tax consultation due soon. The Scotland Act, passed by both Westminster and Edinburgh, devolves powers on those taxes to Scotland from 2015.

The act also allows for income tax in Scotland to be reduced by 10% from 2016, with the Scottish parliament responsible for variations thereafter.

Borrowing limits will also be increased, with MSPs able to raise up to £2.2bn for capital expenditure, from April 2015.

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