Thousands moved to Scotland since tax rate powers switch

Thousands more taxpayers moved to Scotland from the rest of the UK in each year since powers over tax rates were devolved, research from HMRC has found.

At the request of the Scottish and Welsh governments, data on the tax base and migration was studied for the period between 2009 and 2022.

After 2017, when Scottish tax rates started to diverge from those south of the Border, it found net migration to Scotland increased. Similarly, the amount of taxable income moving to Scotland increased from around 2019 onwards.

The Scottish Government welcomed the research, with Deputy First Minister Shona Robison saying it was “yet more proof that Scotland is an attractive place for people to live and work”.

The HMRC report said: “Beyond year ending 2017, the first year where income tax was (partially) devolved, net migration to Scotland increased on a yearly basis, to around 8,000 individuals in year ending 2022.

“This deviation from the generally stable trend reflects decreasing numbers of taxpayers migrating from Scotland to rUK combined with an increase in migration to Scotland in year ending 2022.”

Ms Robison said: “The latest figures show that across all tax bands and almost all age ranges in 2021-22, more taxpayers chose Scotland as their home than left – offering yet more proof that Scotland is an attractive place for people to live and work, while our progressive approach to income tax asks those who earn more to contribute more.”

The Scottish Conservatives said the HMRC study predated the latest Scottish Government budget.