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Devolved Tax: What Is The Difference Between The Nations?

Here are a few important examples ...

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Posted by Roger Eddowes on 11/07/2022 @ 8:00AM

Having clients in both Scotland and Wales, I'm very aware that there are a number of differences in taxation, but what is the scope of these devolved taxes?

There is quite a lot of devolved taxation in the United Kingdom!

There is quite a lot of devolved taxation in the United Kingdom!

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As we all know, the UK Government retains responsibility when it comes to all 'national powers' that haven't been transferred to Northern Ireland, Scotland or Wales. Things like business rates are retained by local governments.

"Even some regions have a degree of devolution!"

In Northern Ireland, Corporation Tax is devolved with the idea of harmonising the tax cross-border. This process collapsed when power-sharing fell through in 2017 and it hasn't been mentioned again, though it still remains devolved.

Scotland has all sorts of devolved powers such as Land and Building Transaction Tax and Scottish Landfill Tax. They set all rates and bands of Income Tax (except personal allowances) and half of the VAT collected there remains in the country.

Wales has its own Land Transaction Tax and a Landfill Disposal Tax and has partial Income Tax powers where they set its own 'Welsh' rate for each band.

One of the main differences between the countries is between Stamp Duty Land Tax (SDLT) in England and Northern Ireland, Land Building Transaction Tax (LBTT) in Scotland and Land Transaction Tax (LTT) in Wales. An example of this is on a £250,000 property purchase, for SDLT it would cost £2,500, for LBTT it's £2,100 and for LTT it would be £2,450, so there are differences.

When it comes to Income Tax on an annual salary of, say, £25,000 then England and Northern Ireland workers would pay £2,484.20, in Scotland, they pay £2,462.48 and Wales would be the same as England and NI for now. It is worth noting that the higher rate in Scotland is different.

"A worker paying over £1,500 more in tax
if they earned £50,000 instead!"

There are plenty of other examples of differences between taxation in England, Wales, Northern Ireland and Scotland though I've covered the main ones. If you need to know something specific then I'm always here to help.

Until next time ...

Business Godparent


Would you like to know more?

If anything I've written in this blog post resonates with you and you'd like to discover more about devolved taxation, it may be a great idea to give me a call on 01908 774320 and let's see how I can help.

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About Roger Eddowes ...


Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.