Scotland to receive greater control over tax powers: reports

LONDON: Scotland is set to gain the biggest transfer of power since its devolved parliament was set up when an influential commission recommends on Thursday that the country should have large new powers over income tax, media reports said.

Scottish voters rejected independence from Britain in a referendum in September, swayed in part by promises by British politicians of a greater say in managing their own affairs, including more powers to set their own tax rates.

Media reports said the commission, set up after the referendum, would recommend that Scotland should be given control over income tax rates, tax bands and parts of the welfare budget.

But the report is expected to say London should retain control over the threshold at which people start paying income tax, the BBC said.

Scotland has not used the limited powers it was granted in 1998 to vary income tax rates. But the pro-independence Scottish National Party - which currently controls the Edinburgh administration - wants full control over the tax system.

The full report will be published later on Thursday morning.