7 March 2013 | Uncategorized
Last year HMRC kindly clarified the scope of the forthcoming Scottish rate of income tax. The Scotland Act 2012 inserts new sections 80D-80F into the Scotland Act 1998, which define who will be a Scottish taxpayer.
To be a Scottish taxpayer, a person must be UK-resident for tax purposes – an individual who is not UK tax-resident cannot be a Scottish taxpayer. The main connecting factor is an individual’s sole or main place of residence (is this the same as their ‘home’?). If they have one place of residence and this is in Scotland, they are a Scottish taxpayer.
Those who cannot identify a main place of residence will need to count the days they spend in Scotland and elsewhere in the UK; if they spend more days in Scotland, they will be a Scottish taxpayer.
But, will the same day-count rules apply as for the new Statutory Resident Test or are we facing two different systems?
I sense many tax planning opportunities arising, and those who work in both Scotland and elsewhere will be looking very closely at tax rates that will apply.
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