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Local income tax plans published |
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The Scottish Government has published its plans for a replacement for Council Tax, a local income tax, at the start of a public consultation.
The consultation proposes:
- A three per cent rate of tax applied to the income that is already subject to basic and higher rates of UK income tax
- A tax free personal allowance that matches the UK personal allowance levels
- Collection that complements the existing national system through Pay as You Earn (PAYE) and self-assessment
- Exemptions for savings and investment income
- A tax for second homes, subject to local requirements and with flexibility for councils to determine the rate of tax. It is proposed this will be collected by councils
The consultation will run until Friday 18 July. Further information on the proposals can be found on the Scottish Government website.
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