Your views please on the technical guidance on Scottish taxpayer status

25 June 2015

The Scotland Act 2012 inserts new sections 80D – 80F in to the Scotland Act 1998 that define who will be a Scottish taxpayer when considering the Scottish rate of income tax.

11 June 2015 saw the publication of draft technical guidance by HMRC which is available for review and comment. The deadline for submitting comments is 31 July 2015.

The guidance includes definition of a Scottish Tax payer which, as you might imagine, focuses extensively on an employee’s residence as it is where an employee lives that is key to establishing whether they will be a Scottish tax payer.

“An individual will be a Scottish taxpayer if they’re resident in the UK for tax purposes and, in the course of a tax year, they satisfy any of three tests:

  • they’re a Scottish Parliamentarian
  • they have a “close connection” to Scotland, through either; having only a single “place of residence”, which is in Scotland or where they have more than one “place of residence”, having their “main place of residence” in Scotland for at least as much of the tax year as it has been in another part of the UK
  • where no “close connection” to Scotland (or any other part of the UK) exists - through day counting - if the individual spends at least as many days in Scotland as elsewhere in the UK”

The CIPP Policy & Research Team will be submitting comments on the draft technical guidance but we would welcome your comments also as to whether you feel that this guidance fulfils its objectives in providing technical guidance that will clarify and assist understanding and decision making for how tax status will be established for a Scottish tax payer.

This guidance is aimed at the professional and adviser rather than employee, guidance aimed at helping individuals will be issued later in the year.

If you have comments that you wish to include or make us aware of, please send them for the attention of Samantha Mann, Senior Policy & Research Officer to policy. The deadline for comments is Friday 24 July. Thank you.