The Scotland Office says a "milestone" has been reached in the transfer of £12bn worth of powers over income tax to Holyrood.

On Wednesday, the UK Government will make the formal Parliamentary orders which will confirm the transfer of powers to the Scottish Parliament.

The changes mean that from April next year MSPs will be able to set income tax rates and thresholds.

The powers are part of the Scotland Bill, which was brought forward to implement the recommendations of the post-referendum Smith Commission.

Scottish Secretary David Mundell said: "With these landmark powers over income tax, the Scottish Parliament will become one of the most powerful devolved parliaments in the world.

"The Scottish Government will now have unprecedented power to shape the economy of Scotland. Crucially, for the first time, it will not only have to account to the people of Scotland for the money it spends, but also for the money it plans to raise.

"Through the Scotland Act 2016 and, most recently, the Autumn Statement, the UK Government has provided more powers and more funding for Scotland. It's now over to the Scottish Government to set out how it plans to use these powers to drive jobs and growth in Scotland."

Further powers over VAT receipts, air passenger duty and disability benefits are due to be devolved at a later date.