<p><p>The Scottish National Party today set out proposals for replacing council tax (and council tax benefit) with a local income tax in Scotland. The local income tax (LIT) would apply at the starting, basic and higher rates, to all taxable income except savings income, but would be capped so that local authorities would not be allowed to increase the rate above 3%. The SNP would continue to levy a property tax on second and empty homes.</p></p>
Authors
Stuart Adam
Stuart is a Senior Economist working in the Tax sector, and focuses on analysing the design of the tax and benefit system.
David Phillips
David is Head of Devolved and Local Government Finance. He also works on tax in developing countries as part of our TaxDev centre.
More from IFS
Understand this issue
Policy analysis
Academic research
