Following the successful of the "No" campaign, Scotland remains part of the United Kingdom. The government has already promised new devolved powers to enhance the Scottish Parliament and significantly these include extensive powers over taxation. Will Scotland now become a tax haven? 

The Chartered Institute of Taxation (CIOT) is calling on all those involved in the devolution convention which begins work today to address the practical nature of how two tax systems will impact on where taxpayers decide where to live, where businesses decide to base their operations, where business is done in the UK, and where businesses decide to invest.

Moira Kelly, Chair of the CIOT’s Scottish Technical sub-committee, said:

“In anticipation of a ‘devolution convention’ for the Scottish Parliament, politicians of all colours and stripes must be clear about what tax decisions they are willing to devolve, in addition to explaining what effect multiple tax systems will have upon the UK-wide economy.

“The political convention provides an opportunity for Scotland and the UK to address what can be done with taxation in terms of devolution, and how differential tax rates, thresholds and allowances will affect the operational make-up of the UK economy.”

Concluding, Moira Kelly said:

“This is an important time for Scottish and UK taxation so it is vital that all avenues are explored when pressing forward with devolution of tax and spending decisions. The Chartered Institution of Taxation will contribute to this process and assist with the practical issues around any transfer of tax powers.”