Pensioners to feel the pinch from ‘wealth’ tax

● Half of older Scots to be targeted ● Measure to tackle wealth gap

One in every two people hit by a proposed “wealth” tax for Scotland would be pensioners.

Labour wants to introduce a 1 per cent levy on savings, pensions and assets, including property, held by the richest 10 per cent of the country’s population.

But figures have revealed half of those affected would be pensioners, with older couples whose property values have soared in places such as Edinburgh among those who would be penalised under the tax.

Scots pensioners would make up half of those hit by Labour’s proposed “wealth tax”, official figures indicate.

Those most likely to be affected include older couples in parts of Edinburgh and the Lothians who have seen their property values soar in recent years but are not cash rich.

Scottish Labour said that the tax would raise £3.7 billion and target the richest 10 per cent of the population, with a 1 per cent levy on their savings and pensions as well as assets such as property.

This could hit households with a combined “wealth” of £1 million.

But Scottish Government figures reveal that this would disproportionately hit pensioner households.

The breakdown of the top 10 per cent of the wealthiest Scots shows pensioner couples (31 per cent) make up the lion’s share of this, according to Wealth and Assets in Scotland 2006-14. In addition, 12 per cent are a couple where one is a pensioner and 6 per cent are single pensioners.

SNP MSP Bruce Crawford said: “For pensioners, being asset-rich does not necessarily mean having a high income.

“It’s not entirely clear how they would afford to pay, unless Richard Leonard

0 Labour’s proposed tax would target the richest 10 per cent of the population

Mr Leonard says Holyrood could introduce the wealth tax using an “order in council” in the original Scotland Act.

“A Labour spokesman said: “With foodbanks, homelessness and child poverty continuing to hold a grip on too many lives, this intervention from the SNP seems ill judged.

“Many SNP voters will be surprised that the party would choose to attack Labour for considering radical solutions to inequality in Scotland.”