Local income tax
   HOME

TheInfoList



Click Here for Items Related To - Local income tax
OR:
Local income tax on:   [Wikipedia]   [Google]   [Amazon]

Several political parties have advocated a local income tax in Scotland as an alternative to the
Council Tax Council Tax is a local taxation system used in England, Scotland and Wales. It is a tax on domestic property, which was introduced in 1993 by the Local Government Finance Act 1992, replacing the short-lived Community Charge, which in turn re ...
, as part of funding for
local authorities Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-loca ...
. Various proposals were promoted during the 2007 general election campaign.


Proposals

In 2004, the
Scottish Socialist Party The Scottish Socialist Party (SSP; gd, Pàrtaidh Sòisealach na h-Alba; sco, Scots Socialist Pairtie) is a left-wing political party campaigning for the establishment of an independent socialist Scotland. The party was founded in 1998. It c ...
launched a "Scrap the Council Tax" campaign, boosted by a poll suggesting 77% of Scots supported the abolition of the tax. A bill proposing a progressive system of taxation based on a household's income was presented in 2005, but was defeated with 12 MSPs in favour, 94 against, and 6 abstaining. Although the SNP and the Liberal Democrats supported the principle of income-based taxation, they disagreed with the SSP's specific proposals, which would have exempted anyone with an annual income of less than £10,000 and reduced liabilities for anyone with an annual income of less than £30,000, while targeting revenue generation to household incomes in excess of £90,000. Different proposals to abolish
council tax Council Tax is a local taxation system used in England, Scotland and Wales. It is a tax on domestic property, which was introduced in 1993 by the Local Government Finance Act 1992, replacing the short-lived Community Charge, which in turn re ...
formed part of the manifestos of the Scottish National Party and the Liberal Democrats during the Scottish Parliament general election of May 2007. The SNP version involves the centralised distribution of funds raised from the new tax throughout the Scottish local authorities whereas the Liberal Democrats' proposal devolves the distribution to individual authorities. The SSP said under its proposals, unlike other local income tax schemes, the set-up costs and problems of fiscal flight would be insignificant, as the tax rates are not set locally. After the 2007 election, the SNP-run Scottish Government planned to bring forward
legislation Legislation is the process or result of enrolling, enacting, or promulgating laws by a legislature, parliament, or analogous governing body. Before an item of legislation becomes law it may be known as a bill, and may be broadly referred to ...
to replace Council Tax with a local income tax as part of the funding for
Scottish local authorities Local government in Scotland comprises thirty-two local authorities, commonly referred to as councils. Each council provides public services, including education, social care, waste management, libraries and planning. Councils receive the majori ...
. A major setback took place when the
UK government ga, Rialtas a Shoilse gd, Riaghaltas a Mhòrachd , image = HM Government logo.svg , image_size = 220px , image2 = Royal Coat of Arms of the United Kingdom (HM Government).svg , image_size2 = 180px , caption = Royal Arms , date_est ...
said it would withhold almost £400 million in
Council Tax Benefit Council Tax is a local taxation system used in England, Scotland and Wales. It is a tax on domestic property, which was introduced in 1993 by the Local Government Finance Act 1992, replacing the short-lived Community Charge, which in turn repl ...
if the Scottish government implemented the proposals. Controversially, the UK government said it would, however, release the funds for a tax scheme designed by Scottish Labour.


See also

*
Business rates in Scotland Business rates is the commonly used name of Non-Domestic Rates in Scotland, a tax on occupation of non-domestic property. Rates are a property tax used to fund local services that dates back to the Poor Law. History The Poor Law introduced ...
*
Tartan tax 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 Scott ...
*
Taxation in the United Kingdom Taxation in the United Kingdom may involve payments to at least three different levels of government: central government ( HM Revenue & Customs), devolved governments and local government. Central government revenues come primarily from income ...
*
Income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...
*
Local taxation A comparison of tax rates by countries is difficult and somewhat subjective, as tax laws in most countries are extremely complex and the tax burden falls differently on different groups in each country and sub-national unit. The list focuses on ...
*
Council Tax Council Tax is a local taxation system used in England, Scotland and Wales. It is a tax on domestic property, which was introduced in 1993 by the Local Government Finance Act 1992, replacing the short-lived Community Charge, which in turn re ...
*
Land Value Tax A land value tax (LVT) is a levy on the value of land (economics), land without regard to buildings, personal property and other land improvement, improvements. It is also known as a location value tax, a point valuation tax, a site valuation ta ...


References

Scotland Scotland (, ) is a Countries of the United Kingdom, country that is part of the United Kingdom. Covering the northern third of the island of Great Britain, mainland Scotland has a Anglo-Scottish border, border with England to the southeast ...
Scotland Scotland (, ) is a Countries of the United Kingdom, country that is part of the United Kingdom. Covering the northern third of the island of Great Britain, mainland Scotland has a Anglo-Scottish border, border with England to the southeast ...
{{tax-stub