A five-year route to modernising land tax administration

A route-map for improved land tax administration

The route-map below sets out a high-level programme with key steps that would enable Scottish Ministers to modernise the current system of land tax administration, opening up viable reforms to tax land and property more effectively and efficiently. It is informed by Scottish Land Commission’s advice and research on tax (see appendix). 

It is informed by guiding principles that systems improvements should be:

Deliverable – It is not about creating a perfect system but one in which visible and impactful improvements are made. Changes need to be seen as credible, well governed and clearly communicated.⁷

Digital - Digital transformation is a key enabler as demonstrated in international practice. Scottish Government’s digital strategy sets out that public sector data is a national asset and a key enabler of reform. It sets out a plan for 2025-28 to deliver sustainable digital public services.8 The route-map supports this aim to help Scotland keep pace with international best practice around use of technology in the tax and valuation context.^{9 10}

Collaborative - This work contributes to delivering public service reform, making better use of public data and systems, and more clearly joining up policy with the delivery of outcomes. This will require leadership and collaboration across the public sector, reflecting the aims of Scottish Government’s approach to public service reform strategy.¹¹ It will also need the public sector to work directly with the people that policy, service and product will impact or be used by.¹²

Whether the intent of future policy is to move towards land value taxation and/or introduce targeted tax reforms to achieve environmental or other land use outcomes, the practical barriers and limitations of the current system remain the same.