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| Government Expenditure and Revenue in Scotland |
APPENDIX B: 1996-97 GENERAL GOVERNMENT RECEIPTS: METHODOLOGY FOR PRODUCING SCOTTISH ESTIMATES |
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GGR IN 1996-97 |
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| Table 14 provides estimates of General Government Receipts for Scotland in 1996-97. | ||
| Table 14. General government receipts in Scotland(1), 1996-97 | ||
£ billion of UK(2) |
As a % |
|
| Income tax | 5.5 |
8.0 |
| Corporation tax (excl North Sea) | 2.5 |
9.2 |
| Capital gains tax | 0.1 |
8.6 |
| Inheritance tax | 0.1 |
7.9 |
| Stamp duties | 0.2 |
6.4 |
| VAT | 4.0 |
8.6 |
| Fuel duties | 1.2 |
7.2 |
| Tobacco duties | 0.9 |
11.3 |
| Alcohol duties | 0.6 |
10.2 |
| Betting and gaming duties | 0.1 |
8.4 |
| Customs duties and agricultural levies | 0.2 |
8.6 |
| Air passenger duty | 0.03 |
8.7 |
| Insurance premium tax | 0.1 |
8.7 |
| Landfill tax | 0.01 |
8.7 |
| Vehicle excise duties | 0.3 |
7.2 |
| Non-domestic rates | 1.2 |
8.5 |
| Other taxes and royalties | 0.7 |
8.5 |
| Social security receipts | 4.2 |
9.0 |
| Council tax | 1.0 |
9.7 |
| Interest and dividends | 0.5 |
8.6 |
| Gross trading surpluses and rent | 0.6 |
10.3 |
| Imputed charge for capital consumption | 0.6 |
16.6 |
| Other revenue | 0.1 |
8.6 |
| Total | 24.7 |
8.7 |
| Note:1. Figures exclude North Sea oil revenues (North Sea corporation tax, petroleum revenue tax and oil royalties). | ||
| 2. Percentages based on unrounded figures. | ||
INCOME TAX |
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| The Scottish share of UK income tax was derived from the Inland Revenue's Survey of Personal Incomes. The UK income tax figure used for 1996-97 was £69.1 billion and relates to actual receipts, rather than liabilities. | ||
| CORPORATION TAX (EXCLUDING NORTH SEA) | ||
| Corporation tax is assessed on company profits. As many companies have production facilities located in different parts of the UK, it is not sensible to allocate the tax on the basis of where it is collected. | ||
| The Scottish share of UK corporation tax, less North Sea corporation tax, was allocated on the basis of Scotland's share of UK (less Continental Shelf) gross trading profits and surpluses and income from self-employment, based on data from the UK Regional Accounts for 1996. The share of gross trading profits and surpluses was used in previous reports, but this is no longer published separately. | ||
CAPITAL GAINS TAX |
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| The Scotland estimate was made on the basis of Scotland's share of UK GDP (excluding Continental Shelf). | ||
INHERITANCE TAX |
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| The Scottish figure for inheritance tax is the amount of inheritance tax collected in Scotland from Scottish residents by the Scottish Capital Taxes Office. | ||
STAMP DUTIES |
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| The estimate of stamp duty on house and land sales was based on Scotland's share of the total value of UK house sales. The estimate of stamp duty on share transactions was based on Scotland's share of UK share ownership. | ||
EXPENDITURE TAXES: GENERAL |
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| Expenditure taxes have been allocated mainly on the basis of final expenditure on the goods and services affected. This approach is widely used where taxes have their main impact on the prices of the final products. | ||
VAT |
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| Most of the expenditure to which VAT is attributed relates to spending by consumers. Scotland's share of UK VAT revenue was, therefore, estimated on the basis of Scotland's share of consumers' expenditure on those goods and services on which VAT is paid. The data source on consumers' expenditure is the UK Regional Accounts produced by the Office for National Statistics. | ||
| PETROL, DERV, ETC. | ||
| The estimate is derived by apportioning the UK tax to Scotland on the basis of Scotland's share of inland deliveries of petrol, derv, etc. | ||
CIGARETTES AND TOBACCO |
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| The estimate is the UK tax on cigarettes and tobacco, apportioned to Scotland on the basis of Scotland's share of consumers' expenditure on cigarettes and tobacco in 1996. | ||
ALCOHOLIC DRINK |
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| The estimate is the sum of the UK taxes on spirits, beer and wines, apportioned on the basis of Scotland's share of UK consumers' expenditure on each of these items separately. The use of the separate components of expenditure on alcoholic drink enables account to be taken of Scotland's higher consumption of spirits (17.0 per cent of the UK total in 1996), compared with beer (7.3 per cent) and wines (7.8 per cent) | ||
BETTING AND GAMING |
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| The Scottish share of UK betting duty from the National Lottery was based on the value of ticket sales in Scotland compared with those for the UK. The source used to calculate Scotland's share of the remainder of UK betting duty was consumers' expenditure data on betting and gaming from the UK Regional Accounts, which, in turn, is based on Scotland's share of the UK population aged over 15. | ||
AIR PASSENGER DUTY |
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| Air passenger duty was introduced in November 1994 for passengers travelling by air from UK airports. For the purposes of this report (covering the year 1996-97) the charge is £5 per passenger for destinations in the UK or the EC and £10 for destinations elsewhere (with certain exemptions). The rates were increased to £10 for flights within the UK, or from the UK to states within the European Economic Area, and to £20 for flights elsewhere, with effect from 1 November 1997. The Scottish population share is used to calculate the Scottish share of the tax. | ||
INSURANCE PREMIUM TAX |
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| This tax was introduced on insurance premiums for most general risks from 1 October 1994. Scotland's population share was used to estimate Scotland's share of the tax. | ||
LANDFILL TAX |
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| The new landfill tax, which took effect on 1 October 1996, has been allocated on a population share basis. | ||
MOTOR VEHICLE EXCISE DUTY |
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| The Scottish share of UK motor vehicle excise duty in 1996-97 was estimated using Scotland's share of UK car licences in 1996. | ||
OTHER TAXES AND ROYALTIES |
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| The Scottish component of the remaining unallocated UK expenditure taxes was apportioned by Scotland's share of 1996 UK GDP (excluding Continental Shelf). The remaining taxes attributed this way totalled £7,800m for the UK and include VAT refunds, payments to the National Lottery Distribution Fund, and fossil fuel and gas levies. Northern Ireland rates, which do not relate to Scotland, are subtracted from the UK total. | ||
SOCIAL SECURITY CONTRIBUTIONS |
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| The figure was based on the DSS 1 per cent sample of National Insurance records. The estimate for Scotland was supplied by UK Regional Accounts. | ||
COUNCIL TAX AND NON-DOMESTIC RATES |
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| Separate figures for Scotland were available from the Scottish Office Local Government Finance Division. | ||
INTEREST AND DIVIDEND RECEIPTS |
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| General government interest and dividend receipts were allocated by the Scottish share of UK GDP (excluding Continental Shelf). They comprise dividend and interest from public corporations and from the private sector. This includes interest paid on loans by Central Government, dividends received from Government shareholders and dividends paid on public dividend capital. | ||
GROSS TRADING SURPLUSES AND RENT |
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| This comprises the gross trading surpluses (or losses) of Central Government and Local Authority trading activity plus the rent income of Central and Local Government, after deducting the cost of repairs etc, but before deducting depreciation and interest. By far the largest component was local authority rent, data on which were provided directly by the Office for National Statistics. The remainder was allocated in proportion to the Scottish share of UK GDP (excluding Continental Shelf). | ||
IMPUTED CHARGE FOR CAPITAL CONSUMPTION |
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| A Scottish proportion was calculated from the Office for National Statistics' Regional Accounts estimates for 1996, and this was applied to UK amounts in Public Expenditure Statistical Analyses 1998-99. The imputed charge for capital consumption is an accounting item and is included on a double-entry basis in the public finances. Its incorporation in GGR offsets the inclusion of the imputed charge in GGE (see Appendix A). | ||
OTHER RECEIPTS |
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| These consist mainly of miscellaneous receipts, including payments into the National Lottery Distribution Fund, receipts from driving licences, public service vehicle licence fees, heavy goods vehicle licence fees, passport fees, gun licences and fines and penalties in magistrate and Scottish courts. The estimate for Scotland was apportioned by the Scottish share of UK GDP (excluding the Continental Shelf). | ||
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