Scottish Parliament passes tax collection bill

From Democracy Live: Finance Secretary John Swinney calls on MSPs to back the bill

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A bill to create Scotland's first tax collection system for 300 years has been passed by the Scottish Parliament.

The bill will set up a new body to collect taxes under powers devolved from Westminster by the Scotland Act.

Revenue Scotland will be responsible for the land and buildings transaction tax and the Scottish landfill tax.

The 2012 Act also gave MSPs the power to set a Scottish rate of income tax, to be administered by HM Revenue and Customs for Scottish taxpayers.

Ahead of the Stage 3 debate on the Revenue Scotland and Tax Powers Bill, Finance Secretary John Swinney said: "This is the next step in Scotland's home rule journey and will offer a fresh and fairer approach which meets Scotland's needs."

He added: "I am determined that Revenue Scotland will combat tax avoidance as vigorously and effectively as possible, and the bill contains a wide-ranging general anti-avoidance rule which will allow Revenue Scotland to take robust counteraction against artificial tax avoidance schemes - not just the most abusive end of the spectrum."

The new land tax, which will replace stamp duty, and the landfill tax will come into effect from April 2015.

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Smith Commission Live

  1.  
    08:29: Analysis - Douglas Fraser

    'The Scottish Parliament has had 15 years of spending power with very little taxation accountability.

    Scottish money

    'That's about to change, a lot, if the Smith Commission "heads of agreement" translate into workable new devolution legislation.

    'There is a political case for such radical changes.'

    Read the analysis of BBC Scotland's Business and Economy Editor Douglas Fraser

     
  2.  
    08:23: Who is Lord Smith?

    His name may be familiar to you after the Commonwealth Games in Glasgow, as he served as chairman of the organising committee.

    Lord Smith of Kelvin

    Lord Smith of Kelvin was then appointed to oversee the process of devolving more powers to Scotland.

    Find out more about him.

     
  3.  
    08:18: Who was on the Commission?

    Ten people - two representatives each from the SNP, Labour, the Conservatives, the Liberal Democrats and the Greens - made up the Smith Commission.

    Lord Smith commission panel

    Find out who they were.

     
  4.  
    08:14: What is the commission?

    The recommendations of the Smith commission, chaired by Lord Smith of Kelvin, are to form the basis of UK government legislation on more Scottish powers although they would not be delivered until after the Westminster election in May 2015.

     
  5.  
    08:08: Analysis - What powers will Holyrood get? Glenn Campbell BBC Scotland news

    The Smith commission on further devolution has concluded its talks with the five political parties represented in the Scottish Parliament. They have reached agreement on a package of additional powers, which is to be announced in Edinburgh on Thursday.

    The commission's recommendations are expected to include:

    • the full devolution of income tax rates and bands, with the personal allowance (the threshold above which tax is paid) continuing to be set by the UK government
    • assigning a proportion of the VAT revenues raised in Scotland to the Scottish budget
    • giving Holyrood control of air passenger duty and - eventually - the aggregates tax
    • devolving welfare measures including attendance allowance, carers' allowance and some cold weather payments
    • retaining UK control of all the benefits being merged into universal credit, while introducing some devolved flexibility over aspects such as the frequency of payments
    • devolving the work programme
    • putting Holyrood in charge of its own elections, which could allow MSPs to give 16 and 17 year olds a vote in the 2016 Scottish Parliament election
     
  6.  
    08:04: Smith Commission

    The BBC understands the commission on devolving powers to the Scottish Parliament is to recommend it has full control over income tax rates and bands.

    Scottish Parliament

    The report is not expected to call for personal allowances - the threshold at which tax is paid - to be devolved.

    The Smith Commission, which was set up after the "No" vote in the independence referendum, reached an agreement at its final meeting in Edinburgh and its full report will be published on Thursday morning.

     
  7.  
    08:01: Good morning Graham Fraser BBC Scotland

    Good morning, and welcome to our live coverage of the Smith Commission.

     

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