Achi news desk-
The Scottish Government was quick to welcome the research as evidence that Scotland is an “attractive place to live and work”.
However, opposition parties were quick to point out the figures before a new 45% tax band introduced from 1 April for people earning between £75,000 and £125,140.
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Migration to Wales, which has devolved tax powers but is taxed at the same level as England, from the rest of the UK also increased in the same period.
Data was collected at the request of the Welsh and Scottish governments, looking at the tax base and migration between 2009 and 2022.
After 2017, when Scottish tax rates first began to diverge from those south of the border, net migration to Scotland increased steadily, becoming most pronounced during the pandemic years.
On average during that period, almost 4200 more taxpayers moved to Scotland than left each year.
The same pattern emerged in Wales, where income tax rates did not change.
Making it clear that there was no way to “draw firm conclusions about whether migration trends are affected by taxes”, the HMRC report said: “Beyond the year ending 2017, the first year in which income tax was (partially) devolved, net migration to Scotland increased annually, to around 8000 individuals in the year ending 2022.
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“This departure from the stable overall trend reflects the reduction in the number of taxpayers migrating from Scotland to the UK together with an increase in migration to Scotland in the year ending 2022. ”
Deputy First Minister Shona Robison said: “The latest figures show that across all tax bands and almost all age ranges in 2021-22, more taxpayers have chosen Scotland as their home than those on back – offering even more proof that Scotland is an attractive place for people. live and work, while our progressive approach to income tax requires those who earn more to contribute somewhat more.
“We know that people base the decision on where to live on a range of factors, and by coming to Scotland they have access to a range of services and benefits that are not available anywhere else in the UK, including free training and prescriptions.
“Scotland has the most generous childcare package for three and four-year-olds, and council tax is lower here than in England.
“This social contract with the people of Scotland is partly funded by our progressive income tax system.
“Indeed, in 2021-22 around £200 million of taxable income was brought here as a result of immigration in one year, increasing economic activity while helping to fund vital public services such as our NHS and our efforts to tackle with child poverty.”
Warnings had previously been issued that higher tax rates would mean wealthy Scots leaving the country for England.
Scottish BMA chairman Iain Kennedy said senior health staff would leave the NHS because of the increase in the tax burden.
HMRC figures show a net loss of 1030 higher rate Scottish taxpayers in the highest rate tax bands and £60.6 million in lost tax revenue.
MPs on Holyrood’s economy committee were told this week that budget airline Ryanair is struggling to recruit staff at Prestwick Airport due to higher taxes.
Scottish Conservative shadow finance secretary Liz Smith MSP said: “It pre-dates the SNP’s recent devastating tax-and-a-tax budget, which has been widely seen as the tipping point in the widening tax gap between Scotland and the rest of the UK.
“Almost every business group has identified that tax loophole as a serious disincentive, which will prevent the economic growth that is essential to funding public services. They were clear that the current levels, that this report is not going to tackling them, has an active impact on Scotland’s ability to recruit and retain key workers.
“Groups such as the British Medical Association, the British Dental Association and, just the other day, government-owned Prestwick Airport have also warned that it is getting harder and harder to recruit and retain skilled workers.
“Instead of burying their heads in the sand and twisting the facts, SNP ministers need to act now, to end Scotland’s status as the highest taxed part of the UK.”
