General Election 2024: Scottish Greens float income tax/NI merger and new wealth taxes

The party’s manifesto – titled Vote like our future depends on it –  proposes reforms to inheritance tax and business taxes and promotes the introduction of a wealth tax on the richest households.

The measures include:

Personal taxes

• Merge National Insurance and income tax.
• Bring UK income tax rates into line with Scottish income tax rates from 1 April 2025.
• Remove the distinction between earned and unearned income.
• Reform inheritance tax so that it is calculated based on the circumstances of the recipient and includes gifts made during a donor’s lifetime.

Wealth taxes

• Introduce a “progressive” annual wealth tax of 1% on households worth more than £3.4 million, rising to 5% for households over £5.7 million and 10% on more than £18.2 million.

Business taxes

• Closing ‘loopholes’ on business taxes, so that all profits earned in the UK are taxed here.
• Adjust corporation tax to promote fairness, with higher rates for larger corporations and incentives for socially responsible practices.
• Tackle tax avoidance and evasion through closer scrutiny of businesses and increased penalties.
• Introduce a “real, effective” windfall tax on profits in the oil and gas sector and closing the current ‘loophole’ which provides relief for profits reinvested in drilling for new oil and gas.
• Permanently scrap VAT on products and services which contribute to net zero, including installation of domestic renewable energy measures, and zero emissions building materials.
• Oppose freeports.