Date lodged: 20 December 2017
To ask the Scottish Government how much it will cost to implement each of the income tax bands proposed in its Draft Budget, and what the annual administration cost will be.
Answered by: Derek Mackay 11 January 2018
HMRC have estimated annual running costs of between £1.5 and £2m if income tax rates and bands remained the same as the rest of the UK. A more significant divergence between the rates and bands that apply in Scotland when compared to the rest of the UK may lead to an increase in costs of up to a total of £5m.
HMRC estimate total implementation costs of between £20m and £25m for the Scottish Rate of Income Tax, with a further £2.6m for the Scotland Act 2016 income tax powers. These costs are required to implement the income tax powers devolved to the Scottish Parliament in Scotland Acts 2012 and 2016, and are independent of the rates and bands the Scottish Parliament sets.