Date lodged: 19 March 2018
To ask the Scottish Government whether the net benefit of its starter rate of income tax will be treated as additional income for the purposes of council tax reduction.
Answered by: Derek Mackay 3 April 2018
All applicants to the Council Tax Reduction Scheme have their circumstances and income assessed in line with the Regulations setting out the scheme. Those who are receiving specified benefits receive a full reduction in their council tax liability, and pay no council tax. Those who are not receiving specified benefits will continue to have their income assessed against their household circumstances. If their income is beyond that assessed as necessary for their household under the current Regulations they are required to contribute 20% of any excess income towards paying their council tax. The Scottish Government will continue to proactively amend the Council Tax Reduction scheme where evidence indicates any element of its impact or operation is unsatisfactory.