Call for evidence: Scottish Rate of Income Tax (SRIT)

From 1 April 2016 the Scottish Parliament will have responsibility for a Scottish Rate of Income Tax (SRIT). This new power arises from the Scotland Act 2012 and additional powers in relation to income tax may be devolved following the recommendations of the Smith Commission. Section 26 of the Act provides for the basic rate, higher rate and additional rate of the non-savings income of a Scottish taxpayer to be reduced by 10 percentage points. The Scottish Parliament is then required to set a new SRIT on an annual basis which will apply equally to all of these rates. 

It is expected that the Scottish Government will propose its initial SRIT when it publishes its draft budget for 2016-17 in the Autumn. The Committee would, therefore, welcome views on: 

  • What should the rate be for SRIT and why; 
  • If SRIT should be above 10% how should the additional funding be allocated; 
  • If SRIT should be below 10% how should the reduction be funded from existing expenditure; 
  • Has the introduction of SRIT been sufficiently well publicised to employers and tax payers. 

How to submit your evidence


The closing date for responses is Friday 28 August 2015. 

All responses should be sent electronically (in Word format – no confirmatory hard copy required) to [email protected]. Written responses will be handled in accordance with the Parliament’s policy for handling written evidence received in response to calls for evidence. All written evidence received may be published by the Parliament and will be treated as a public document. If you wish to submit evidence in confidence or anonymously please read the policy at the link above. 

What happens next? 


The Committee will be considering those witnesses it wishes to hear oral evidence from in due course, informed by the written evidence received. Oral evidence sessions are likely to be in October and November. 

Contact 


Should you require alternative formats of this information or further assistance in making a written submission to the Committee, please do not hesitate to contact the clerking team of the Committee via the email address above or by telephone on 0131 348 5451.