Tax powers so far refused by Westminster

I have updated this blog as we now have updated “GERS” figures and the Scottish Labour party has published its interim “Devolution Commission” report.  Its findings are similar to the Liberal Democrat proposal.

Although the Scottish Conservatives now appear to be moving towards arguing for the devolving of further tax powers there is as as yet no firm proposal from them.

Listed below are the taxes, duties and charges that Westminster has so far refused to pass control to the Scottish Parliament.

In bold are the additional powers the Liberal Democrats are putting forward for devolving.  This information is from its “Home Rule Commission” published in October 2012.

In red are the additional powers the Scottish Labour party might argue for devolving.  I say “might” as its report is an “interim” report only.

The figures are mostly from the “Government Expenditure & Revenue Scotland 2011-12” (GERS).  The figures are included to give an idea as to the level of revenue produced by a particular tax and are a number of millions of pounds.

  1. Full control over income tax including the underlying law dealing with reliefs etc (some additional powers but not complete control)  (similar proposal from Labour) 10,790
  2. National insurance contributions  8,393
  3. Corporation tax (assignation of revenue only)  2,976
  4. North Sea revenue  10,573
  5. Fuel duties  2,296
  6. Capital gains tax (partial control only) (similar proposal from Labour) 246
  7. Inheritance tax (to be devolved)  (possibly)  164 
  8. Other stamp duties – stamp duty and SDRT on shares (estimated)  276
  9. Tobacco duties  1,129
  10. Alcohol duties  (includes spirit, wine, beer and cider duties)  981
  11. Betting and gaming duties  115
  12. Air passenger duty (even though included in Calman) (not clear if to be completely devolved)  (similar proposal from Labour)  213
  13. Insurance premium tax  251
  14. Climate change levy  64
  15. Aggregates levy (even though included in Calman) (not clear if to be completely devolved) (similar proposal from Labour)  52
  16. Vehicle excise duty  (possibly)  475 
  17. Bank levy (estimate as no separate Scottish figure)  180
  18. Licence fee receipts  325
  19. Crown Estate revenue  (not clear if to be completely devolved) (if Scottish Parliament accepts UK Government terms)  10
  20. VAT cannot be devolved but VAT revenue could be assigned  9,554


Taxes already devolved to be devolved under Scotland Act 2012

  1. Income tax (still only partial control over tax bands and will cost Scottish Parliament millions of pounds a year to administer even if not used)  (estimated partial control over)  5,395
  2. Council tax  1,987
  3. Business rates  1,933
  4. Stamp duty land tax (Scottish Parliament control by April 2015)  330
  5. Landfill tax (Scottish Parliament control by April 2015)  97


The Scotland Act 2012 also does not resolve the imbalance between the amount the Scottish Parliament is responsible for spending and which it raises.  The Scotland Act 2012 only takes us to about a third. 

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