TAXES

A comprehensive review of the taxation system in Scotland, beyond income tax, is called for in the review. This would draw on the best global expertise and experience, with a view to recommending reforms to improve “simplicity, neutrality and flexibility.” On business taxes, the report highlights the potential to tailor the Dutch research and development tax credit scheme, enhance incentives for longer term equity investment and improve capital allowances. It does not back swingeing cuts to corporation tax to attract firms to Scotland, unlike the 2014 white paper, but says this should not rise above the level in the rest of the UK.