ICAS Evidence - Scottish Rate of Income Tax

ICAS has given evidence to the Finance Committee of the Scottish Parliament on the Scottish Rate of Income Tax (SRIT).

21 August 2015

ICAS evidence to Scottish Parliament Finance Committee

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The Finance Committee is considering four questions on the SRIT:

  • 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 taxpayers.

ICAS has commented on the final point only as ICAS does not comment on the quantum of income tax that may be raised by governments and whether this is sufficient or otherwise, or on whether to broaden the tax base or change the tax rates.

The points raised on the awareness of the SRIT are as follows:

  • ICAS shares the concerns of the Smith Commission that there is confusion in the public understanding of tax devolution and this issue should be addressed
  • A wider public awareness campaign would be helpful so that there can be greater understanding and accountability and this should be fronted by both the Scottish Government and the UK Government
  • The impact of the SRIT on savings and dividends income of Scottish taxpayers should be outlined in the public information campaign
  • There is a lack of information about the operation of SRIT for employers and agents
  • Guidance for employers should be made available as soon as possible as they will be the first port of call for employees with questions.


  • Consultations and responses
  • Tax

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