HMRC Update on devolution issues

22 December 2014

HMRC have issued a Technical Note confirming proposed amendments to Income Tax rules relating to the introduction of the Scottish Rate of Income Tax.

The Scotland Act 2012 introduced the Scottish rate of income tax, which is expected to be implemented in April 2016.

The Technical Note now issued contains draft amendments to Income Tax rules which are required to implement the Scottish rate. It also sets out:

· two areas in which the Government has made minor changes to the approach it set out in the May 2012 Technical Note; and

· regulations which set out the high level requirement for Scottish employees & pensioners to be made aware of the amount of tax they are paying towards Scottish Government expenditure. HMRC say that they will continue to consult with employers and pension providers on the specific nature of changes required to the P60.