Revenue Scotland accepts more than half a billion pounds in first year

Revenue Scotland, the nation’s new tax authority which began accepting tax returns this year when it made history as the first national administrator of solely Scottish taxes since 1707, has revealed its first takings.

The authority’s first annual report shows it collected a total of £572 million of tax in its first 12 months through the new Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT) which had replaced stamp duty land tax and UK landfill tax respectively.

The powers to administer the two new taxes followed the passage of the Scotland Act 2012.

It collected £425 million through LBTT and £147 million from SLfT in the year from 1 April 2015 to 31 March 2016.

The Scottish government had originally forecast revenues of £498 million in 2015-16, which was later increased to £508 million.

Almost all (98 per cent) of the 115,000 tax returns were submitted through the new online Scottish Electronic Tax System, exceeding an initial target of 90 per cent.

Revenue Scotland’s operating costs for administering the collection of taxes was £4.67 million - lower than the Scottish government’s original £4.81 million budget allocation for the organisation.

Revenue Scotland’s chairman, Dr Keith Nicholson, said the agency’s first year had been “hugely successful”, with the online tax system having “exceeded expectations and received widespread praise”.

He added: “These achievements are a clear signal to the Scottish taxpayer that Revenue Scotland is operating efficiently and effectively as Scotland’s devolved tax authority.”

Also welcoming the report, Finance Secretary Derek Mackay, said: “These figures show that Revenue Scotland has had a successful and efficient first year, collecting £572 million in tax and operating under-budget.

“That figure confirms the provisional estimate from June this year and is £74 million higher than initial estimates.

“The scale of the challenge of introducing the first Scottish taxes in more than 300 years should not be underestimated, and it’s encouraging to see this has been done so effectively.

“Raising tax is important to funding public services. That is why it is even more important now than ever that public services in Scotland are delivered competently and efficiently and that we continue to support sustainable economic growth.

“That can only be achieved with effective and efficient tax collection and Revenue Scotland’s first annual report shows they have made an important and valuable contribution.”