Align Scottish income tax with SFC baseline (#999)

* Fix Budget change reforms break on subset simulations #994 * Add AHC income * Ensure scottish taxes are updated * Versioning
PolicyEngine · Dec 4, 2024 · bf6dfe8 · bf6dfe8
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diff --git a/CHANGELOG.md b/CHANGELOG.md
@@ -5,6 +5,12 @@ All notable changes to this project will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/), 
 and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0.html).
 
+## [2.17.0] - 2024-12-04 16:48:42
+
+### Fixed
+
+- Scottish baseline matched with Scottish Fiscal Commission.
+
 ## [2.16.0] - 2024-11-28 16:54:41
 
 ### Changed
@@ -1603,6 +1609,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 
 
+[2.17.0]: https://github.com/PolicyEngine/openfisca-uk/compare/2.16.0...2.17.0
 [2.16.0]: https://github.com/PolicyEngine/openfisca-uk/compare/2.15.1...2.16.0
 [2.15.1]: https://github.com/PolicyEngine/openfisca-uk/compare/2.15.0...2.15.1
 [2.15.0]: https://github.com/PolicyEngine/openfisca-uk/compare/2.14.1...2.15.0

diff --git a/changelog.yaml b/changelog.yaml
@@ -1345,3 +1345,8 @@
     changed:
     - Pinned UK data to 1.9.0.
   date: 2024-11-28 16:54:41
+- bump: minor
+  changes:
+    fixed:
+    - Scottish baseline matched with Scottish Fiscal Commission.
+  date: 2024-12-04 16:48:42
diff --git a/policyengine_uk/parameters/gov/hmrc/income_tax/rates/scotland/rates.yaml b/policyengine_uk/parameters/gov/hmrc/income_tax/rates/scotland/rates.yaml
@@ -1,42 +1,60 @@
 description: Rates for Scottish Income Tax
 brackets:
   - threshold:
-      2021-04-06: 0
+      values:
+        2021-04-06: 0
+      metadata:
+        uprating: gov.obr.consumer_price_index
     rate:
       2021-04-06: 0.19 # Starter rate
   - threshold:
-      2021-04-06: 2_306
-      2022-04-06: 2_162
-      2023-04-06: 2_162
-      2024-04-06: 2_097
+      values:
+        2021-04-06: 2_306
+        2022-04-06: 2_162
+        2023-04-06: 2_162
+        2024-04-06: 2_306
+      metadata:
+        uprating: gov.obr.consumer_price_index
     rate:
       2021-04-06: 0.20 # Basic rate
   - threshold:
-      2021-04-06: 13_991
-      2022-04-06: 13_118
-      2023-04-06: 13_118
-      2024-04-06: 12_726
+      values:
+        2021-04-06: 13_991
+        2022-04-06: 13_118
+        2023-04-06: 13_118
+        2024-04-06: 13_991
+      metadata:
+        uprating: gov.obr.consumer_price_index
     rate:
       2021-04-06: 0.21 # Intermediate rate
   - threshold:
-      2021-04-06: 31_092
-      2022-04-06: 31_092
-      2023-04-06: 31_092
-      2024-04-06: 31_092
+      values:
+        2021-04-06: 31_092
+        2022-04-06: 31_092
+        2023-04-06: 31_092
+        2024-04-06: 31_092
+      metadata:
+        uprating: gov.obr.consumer_price_index
     rate:
       2021-04-06: 0.41 # Higher rate
       2023-04-06: 0.42
   - threshold:
-      2021-04-06: 150_000
-      2023-04-06: 125_140
-      2024-04-06: 62_430
+      values:
+        2021-04-06: 150_000
+        2023-04-06: 125_140
+        2024-04-06: 62_430
+      metadata:
+        uprating: gov.obr.consumer_price_index
     rate:
       2021-04-06: 0.46 # Additional rate
       2023-04-06: 0.47
       2024-04-06: 0.45
   - threshold:
-      2021-04-06: null
-      2024-04-06: 125_140
+      values:
+        2021-04-06: null
+        2024-04-06: 125_140
+      metadata:
+        uprating: gov.obr.consumer_price_index
     rate:
       2021-04-06: null
       2024-04-06: 0.48

diff --git a/policyengine_uk/variables/household/income/income.py b/policyengine_uk/variables/household/income/income.py
@@ -200,6 +200,30 @@ def formula(household, period, parameters):
         return np.round(market_income + benefits - tax)
 
 
+class household_net_income_ahc(Variable):
+    label = "household net income"
+    documentation = "household net income"
+    entity = Household
+    definition_period = YEAR
+    value_type = float
+    unit = GBP
+    adds = [
+        "household_market_income",
+        "household_benefits",
+    ]
+    subtracts = [
+        "household_tax",
+        "housing_costs",
+    ]
+
+    def formula(household, period, parameters):
+        market_income = household("household_market_income", period)
+        benefits = household("household_benefits", period)
+        tax = household("household_tax", period)
+        housing_costs = household("housing_costs", period)
+        return np.round(market_income + benefits - tax - housing_costs)
+
+
 class inflation_adjustment(Variable):
     label = (
         f"inflation multiplier to get {datetime.datetime.now().year} prices"
@@ -230,6 +254,20 @@ def formula(household, period, parameters):
         return net_income * household("inflation_adjustment", period)
 
 
+class real_household_net_income_ahc(Variable):
+    label = (
+        f"real household net income ({datetime.datetime.now().year} prices)"
+    )
+    entity = Household
+    definition_period = YEAR
+    value_type = float
+    unit = GBP
+
+    def formula(household, period, parameters):
+        net_income = household("household_net_income_ahc", period)
+        return net_income * household("inflation_adjustment", period)
+
+
 class hbai_household_net_income_ahc(Variable):
     value_type = float
     entity = Household

diff --git a/setup.py b/setup.py
@@ -4,7 +4,7 @@
 
 setup(
     name="PolicyEngine-UK",
-    version="2.16.0",
+    version="2.17.0",
     author="PolicyEngine",
     author_email="[email protected]",
     classifiers=[