The Scottish variable rate (SVR) was a mechanism which would have enabled the Scottish Government to vary (down or up) the basic rate of UK income tax by up to 3p in the pound. The power was never used (and indeed was allowed to lapse by the Scottish Government in 2007[1]) and was succeeded by the legislative framework for Scottish public finance in the Scotland Act 2012, which gives the Scottish Parliament the power to set a Scottish rate of income tax.[2]
When legislating for the Scottish Parliament, a number of matters were reserved by the UK Parliament at Westminster. One such reserved matter was taxation; however, this had been a key point in Scottish negotiations relating to parliamentary control. As a means of compromise, Westminster afforded the Scottish Parliament the ability to vary income tax, which was subsequently given the consent of the Scottish electorate in the second question of the 1997 devolution referendum.
Therefore, the Scotland Act 1998 granted the Scottish Parliament the power to vary income tax by ±3p in every pound. This power was often referred to as the tartan tax, a phrase first used by Conservative financier and politician Michael Forsyth as a way of attacking the power, using the idea of 'tartan' to get across the idea that it would be an extra tax on Scots alone.[3] However, the phrase "tartan tax" would only correctly apply if the tax were varied upwards – no phrase was ever suggested if the tax were varied downwards.
References
^Scottish Variable Rate of tax no longer available
^"HM Revenue & Customs: Devolved taxation in Scotland".
scottish, variable, rate, mechanism, which, would, have, enabled, scottish, government, vary, down, basic, rate, income, pound, power, never, used, indeed, allowed, lapse, scottish, government, 2007, succeeded, legislative, framework, scottish, public, finance. The Scottish variable rate SVR was a mechanism which would have enabled the Scottish Government to vary down or up the basic rate of UK income tax by up to 3p in the pound The power was never used and indeed was allowed to lapse by the Scottish Government in 2007 1 and was succeeded by the legislative framework for Scottish public finance in the Scotland Act 2012 which gives the Scottish Parliament the power to set a Scottish rate of income tax 2 When legislating for the Scottish Parliament a number of matters were reserved by the UK Parliament at Westminster One such reserved matter was taxation however this had been a key point in Scottish negotiations relating to parliamentary control As a means of compromise Westminster afforded the Scottish Parliament the ability to vary income tax which was subsequently given the consent of the Scottish electorate in the second question of the 1997 devolution referendum Therefore the Scotland Act 1998 granted the Scottish Parliament the power to vary income tax by 3p in every pound This power was often referred to as the tartan tax a phrase first used by Conservative financier and politician Michael Forsyth as a way of attacking the power using the idea of tartan to get across the idea that it would be an extra tax on Scots alone 3 However the phrase tartan tax would only correctly apply if the tax were varied upwards no phrase was ever suggested if the tax were varied downwards References Edit Scottish Variable Rate of tax no longer available HM Revenue amp Customs Devolved taxation in Scotland Tartan Tax History ChannelSee also EditFiscal autonomy HM Revenue and Customs Local income tax Scottish Consolidated Fund Taxation in the United Kingdom Retrieved from https en wikipedia org w index php title Scottish variable rate amp oldid 902513654, wikipedia, wiki, book, books, library,
