The Finance and Constitution Committee of the Scottish Parliament established the Budget Process Review Group for the purpose of carrying out a fundamental review of budgetary scrutiny. The key reason behind the review is to ensure that the budget process accommodates the Scottish Parliament’s new financial powers as well as the operation of the Fiscal Framework. As a result of both the Scotland Act 2012 and the Scotland Act 2016, the Scottish Parliament now has powers to both raise and allocate revenue, where previously the Scottish budget was mainly concerned with expenditure.
The Scottish Parliament’s Finance and Constitution Committee has been carrying out an inquiry into A Scottish Approach to Taxation. The CIOT, LITRG and ATT made a joint submission at the end of September 2016 in response to the initial call for evidence.
The draft Finance Bill 2017 legislation aims to limit the range of benefits-in-kind (BIKs) that receive income tax and National Insurance Contributions (NICs) advantages when they are provided as part of salary sacrifice and flexible benefit arrangements. Some amendments to the draft legislation have been included in the Finance Bill and the CIOT will be responding separately in this respect (and to HMRC’s draft guidance).