Question reference: S6W-12563
- Date lodged: 25 November 2022
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Current status: Answered by Tom Arthur on 12 December 2022
Question
To ask the Scottish Government what the potential impact on Scotland will be of the closure of the UK Office of Tax Simplification.
Answer
Whilst the Office of Tax Simplification (OTS) is a UK Government body, many of the taxes within its remit apply across the whole of the UK, including Scotland. The OTS provides an independent and objective perspective on taxes such as Inheritance Tax and Capital Gains Tax, which apply in Scotland and are widely considered to be complex and in need of reform.
One of the principles of good tax policy making set out in the Scottish Government's Framework for Tax is ‘convenience’, which states that "tax policy should be as simple, clear and straightforward as possible and opportunities to streamline the tax system should be taken where they arise." The UK Government's decision to close the OTS contrasts with this principle and the Scottish Government's approach to tax policy. The closure was announced without consultation or notice and has led to bodies such as the Chartered Institute of Taxation to call for the decision to be reversed – a call the Scottish Government agrees with.