With reference to paragraph 6.8 of the report of the Scottish Local Authorities Remuneration Committee's Review of Remuneration Arrangement…

Answered Asked by David McLetchie Con Lodged 30 Jan 2006

The question

To ask the Scottish Executive, with reference to paragraph 6.8 of the report of the Scottish Local Authorities Remuneration Committee's Review of Remuneration Arrangements for Local Authority Councillors, whether the Committee’s understanding “that tax and national insurance will be payable at the appropriate statutory rates” is based on an assumption that the whole amount of a severance payment is taxable as income in the year of payment or whether it is the Committee’s understanding that the taxation rules applicable to termination payments will apply to such severance payments.

The answer

Answered by Tom McCabe on 28 Feb 2006 · 29 days after it was lodged, 1 day after it was due

The SLARC report notes that HM Revenue and Customs are not able to give a view on the taxation rules that may apply to the scheme until the details are set out in regulations. HM Revenue and Customs has indicated that it will consider the taxation consequences of the severance scheme as soon as the details have been set out in regulations. Ministers are presently considering the recommendations made by SLARC in respect of the severance scheme, and all other aspects of remuneration for councillors.

In the Official Report

No contribution in the Official Report cites S2W-22760 by reference.