The referendum is due to take place in Sept 2014 & then the face of the UK could change. But from a tax perspective it already differs.
Following the Scotland Act 2012 various changes are already due to take place on 1st April 2015.
- In Scotland “stamp duty” is set to be replaced by “land & buildings transaction tax” – the latter working on the excess over a given threshold, rather than the whole amount when a threshold is exceeded.
- Scottish landfill tax will replace UK landfill tax for disposals in Scotland.
- Income tax will be made up partly of a Scottish variable rate, with that part going to Scotland & the rest going to the UK. The tax liability will depend on where you are domiciled – Scotland or the rest of the UK.
But what if Scotland receives the “Yes” vote & splits from the UK? In that case its taxation will not be governed by HMRC but by Revenue Scotland & there will be a completely different Scottish tax system.
Complicated? It probably will be!