PwC: what does the Scottish Referendum mean for tax in Scotland and the UK?

Commenting on what the Scottish Referendum result means for tax in Scotland, and the UK as a whole, David Glen, head of tax in Scotland at PwC, said:

"Don’t underestimate how much Scottish taxes are going to change regardless of today's no vote.  New rates of income tax and a completely different tax on land and property will have most impact.  Anyone working in Scotland, buying property or doing business in Scotland, will likely be affected in some way.

"For people who live and work in Scotland, the Scottish Rate of Income Tax will naturally apply.  However, for those people who work in and out of Scotland the situation will be a little more complex. Businesses will need to have resources in place to ensure their payroll systems are fully equipped to deal with both Scottish and other UK taxpayers by April 2016. And the administration for the self-employed will be equally as onerous. Getting top on these issues now is crucial."

Kevin Nicholson, head of tax at PwC, added:

"Major change is coming to the UK tax system.  The Scotland Act will have a big impact on many people and businesses on both sides of the border, which many have underestimated.  For instance, different income tax rates could affect where people choose to live or work.

"People buying property in Scotland will find a progressive Land and Buildings Transaction Tax, instead of the usual stamp duty. Government could seize this opportunity to take a fresh look at the UK tax system as a whole. We need to reform the UK's tax system so it's fit for the future and this provides an extra impetus for broader change."

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For more tax insights and analysis following the Scottish Referendum, click here.