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Parliamentary debates and questions

S5W-12799: Bill Bowman (North East Scotland)

Scottish Conservative and Unionist Party

Date lodged: 17 November 2017

To ask the Scottish Government, when modelling behavioural responses in relation to the five taxation proposals outlined in the discussion paper, The Role of Income Tax in Scotland’s Budget, whether a distinction was made between potential taxpayers moving within the UK and moving abroad for the purposes of avoiding different rates of taxation and, if so, what weighting was given to each type of behaviour.

Answered by: Derek Mackay 29 November 2017

Analysis of behavioural impacts from a tax change incorporate a number of different behaviours, including cross border migration. The Scottish Government’s modelling follows the standard approach adopted by HMRC and other fiscal institutions. Assumptions about taxpayers’ responsiveness are informed by research undertaken by respected institutions, such as the Institute for Fiscal Studies and the International Monetary Fund. This is outlined in detail in Annex A of the discussion paper. It can be found here: