Seil Chat

According to an article in The Guardian last week, the 3p local income tax proposed by the SNP couldn't be further from the truth. It seems the tax will have to be collected centrally and then allocated to councils. Not only that, as only Scotland would be participating in such a scheme, those second home owners living in England wont have to pay. Or am I missing something...?

thank you for your interesting remarks - I fear I better not respond as this would only invite personal scorn from the anti-wealth brigade!

An interesting topic Minimum, made more interesting by looking at who won't pay L.I.T.

First, it is clear that Council Tax will be abolished so there will be no mechanism to take any additional tax for second homes owned by Scottish taxpayers nor any tax at all for second homes owned by those not resident in Scotland for tax purposes.

Second Non-Doms only pay tax on income generated within U.K. Most Non-Doms generate the vast bulk of their income overseas and only pay tax on dividends and interest "earned" in the U.K.
which brings on nicely the third point:
L.I.T. will not be charged on dividends or interest so most Non-Doms will pay no L.I.T.
AND
wealthy individuals who live off "Private Income" (ie dividends and interest) will also pay no L.I.T.

Aaaaah I hear you saying; at least it will hit those on really high taxable incomes like the chairman of RBS who will pay a L.I.T. of £60,000 on his £2,000,000 salary. No, he will just relocate his main residence to Co. Durham or Cumbria and commute to Edinburgh on Monday where he will stay in his (now) second home; thus paying zero.

Ah well.

Long Tail (rat by choice)