John Swinney defends Nicola Sturgeon's tax arrangements after claims of hypocrisy
The former first minister set up a personal company to handle her non-MSP earnings
John Swinney has defended Nicola Sturgeon's tax arrangements after she was criticised for exploiting a loophole to avoid paying Scotland's higher income tax rate.
The former first minister recently updated her register of interests to show she withdrew £20,000 from her personal company, Nicola Sturgeon Ltd, on June 30.
She set up the firm to handle her non-MSP earnings, including a reported £300,000 advance from the publisher of her memoir, Frankly.
As the £20,000 was taken in the form of a dividend, the money was not liable for Scotland's higher rate of income tax introduced by the SNP, saving Ms Sturgeon around £2,400.
Dividends are taxed at a lower rate, and the revenue goes to the UK Treasury, rather than the Scottish Government.
The move by Ms Sturgeon is entirely legal. But critics have accused her of hypocrisy, given her government increased income tax in Scotland and she advocated for the "social contract" in which those with the broadest shoulders pay more.
Mr Swinney was quizzed on Thursday about her tax arrangements by journalists after delivering a speech on independence in Edinburgh.
Asked if his predecessor's arrangements were morally right, he said: "People are entitled to take forward their tax arrangements consistent with the law."
Mr Swinney added: "People are entitled to use the tax opportunities and arrangements available to them." Asked if he would do it, he said: "My income position is very straightforward."
Tory finance spokesman Craig Hoy said: “This was a perfect opportunity for John Swinney to criticise Nicola Sturgeon’s tax arrangements, but her former right-hand man was too weak to do so.
“Frankly, her arrangements are the height of hypocrisy given she’s avoiding the higher taxes she was happy to hammer other hard-working Scots with.
“This pathetic response from John Swinney confirms that he thinks Scots should be happy to pay the sky-high taxes imposed by his SNP Government, unless of course they happen to be one of his SNP colleagues.”
A spokeswoman for Ms Sturgeon said: "Nicola will pay all tax due. The money will be subject to both company tax and personal tax."
Ms Sturgeon set up the “artistic creation” firm in September 2023. It handles money from her writing and broadcasting work.
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