PART 3 continued
Scotland BillPage 20
(c)
during the time between arrival and departure T does not
engage in activities which are to a substantial extent unrelated
to T’s passage through the UK.
(1)
5The Treasury may by order provide that subsections (2A) to (2C) of
section 6 of the Income Tax Act 2007 are to be disapplied, or that their
effect is to be modified, in relation to any enactment.
(2)
The Treasury may by order make such modifications of any enactment
as they consider necessary or expedient in consequence of or in
10connection with—
(a) the power of the Parliament to set a rate under section 80C;
(b) the making of a Scottish rate resolution;
(c) an order under subsection (1).
(3)
An order under subsection (2) may, in particular, provide that a
15Scottish rate resolution does not require any change in the amounts
repayable or deductible under PAYE regulations between—
(a)
the beginning of the tax year for which the resolution has effect,
and
(b)
such date (falling after the date of the resolution) as may be
20specified in the order.
(4)
An order under this section may, to the extent that the Treasury
consider it to be appropriate, take effect retrospectively from the
beginning of the tax year in which the order is made.
25The Scottish Ministers may reimburse any Minister of the Crown or
government department for administrative expenses incurred by virtue of this
Chapter at any time after the passing of the Scotland Act 2011 by the Minister
or department.”
(4)
The repeal by subsection (2) of Part 4 of the 1998 Act has effect so that a tax-
30varying resolution may not be passed so as to relate to any tax year following
such tax year as is appointed by the Treasury under this subsection (as the last
year for which that Part is to have effect).
(5)
A Scottish rate resolution made under the provisions inserted by subsection (3)
may not apply for a tax year preceding such tax year as is appointed by the
35Treasury under this subsection (as the first year for which those provisions are
to have effect).
(6)
The tax year appointed under subsection (4) must precede the tax year
appointed under subsection (5).
(7)
Schedule 3 (which contains other amendments relating to the power to set a
40Scottish rate of income tax) has effect.
(1) The Income Tax Act 2007 is amended as follows.
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(2) In section 6 (the rates of income tax) after subsection (2) insert—
“(2A)
Subsection (2) does not apply to the non-savings income of a Scottish
taxpayer.
(2B)
The basic rate, higher rate and additional rate for a tax year on the non-savings
5income of a Scottish taxpayer is to be found as follows.
Step 1
Take the basic rate, higher rate or additional rate determined as such under
subsection (2).
Step 2
10Deduct 10 percentage points.
Step 3
Add the Scottish rate (if any) set by the Scottish Parliament for that year.
(2C)
Chapter 2 of Part 4A of the Scotland Act 1998 makes provision about
the meaning of “Scottish taxpayer” and the setting of the Scottish rate.”
(3)
15In section 10 (income charged at particular rates: individuals) after subsection
(3A) insert—
“(3B)
If the individual is a Scottish taxpayer, the basic rate, higher rate and
additional rate are—
(a)
on so much of the individual’s income as is savings income, the
20rates determined as such under section 6(2);
(b)
on so much of the individual’s income as is not savings income,
the rates determined as such under section 6(2B).
(3C)
Section 16 has effect for determining which part of a Scottish taxpayer’s
income consists of savings income.”
(4)
25In section 16 (savings and dividend income to be treated as highest part), in
subsection (1) before paragraph (a) insert—
“(za)
which part of a Scottish taxpayer’s income consists of savings
income,”.
(5)
In section 809H (charge on nominated income of long-term UK resident), after
30subsection (3) insert—
“(3A)
For the purpose of calculating income tax charged under subsection (2),
ignore section 6(2A) to (2C) (special rates of income tax for Scottish
taxpayers).”
(6)
In section 1 of the Provisional Collection of Taxes Act 1968 (temporary
35statutory effect of resolution of House of Commons), after subsection (3)
insert—
“(3A)
If a resolution specifies the basic rate, higher rate or additional rate of
income tax, the resolution has effect in relation to Scottish taxpayers
(within the meaning of Chapter 2 of Part 4A of the Scotland Act 1998)
40as if it specified the rate calculated in accordance with section 6(2A) to
(2C) of the Income Tax Act 2007.”
(7)
The amendments made by this section have effect in relation to the tax year
appointed by the Treasury under section 26(5) and subsequent tax years.
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(1)
In Part 4A of the 1998 Act (as inserted by section 24), after Chapter 2 (inserted
by section 26) insert—
(1) A tax charged on any of the following transactions is a devolved tax—
(a)
the acquisition of an estate, interest, right or power in or over land in
Scotland;
(b)
10the acquisition of the benefit of an obligation, restriction or condition
affecting the value of any such estate, interest, right or power.
(2) The tax may be chargeable—
(a) whether or not there is any instrument effecting the transaction,
(b) if there is such an instrument, regardless of where it is executed, and
(c) 15regardless of where any party to the transaction is or is resident.
(1)
Tax may not be imposed under section 80I on so much of a transaction
as relates to land below mean low water mark.
(2)
The following persons are not to be liable to pay a tax imposed under
20section 80I—
(none) Government
A Minister of the Crown
The Scottish Ministers
A Northern Ireland department
25The Welsh Ministers, the First Minister for Wales and
the Counsel General to the Welsh Assembly
Government
(none) Parliament etc
The Corporate Officer of the House of Lords
30The Corporate Officer of the House of Commons
The Scottish Parliamentary Corporate Body
The Northern Ireland Assembly Commission
The National Assembly for Wales Commission
The National Assembly for Wales.”
(2)
35Tax may not be charged in accordance with the provisions inserted by this
section on a land transaction within the meaning of Part 4 of the Finance Act
2003 unless section 29 (disapplication of UK stamp duty land tax) has effect in
relation to that transaction.
(1) 40Part 4 of the Finance Act 2003 (stamp duty land tax) is amended as follows.
Scotland BillPage 23
(2)
In section 48 (chargeable interests), in subsection (1)(a) for “the United
Kingdom” substitute “England and Wales or Northern Ireland”.
(3) In Schedule 4—
(a)
Part 1 contains further amendments relating to the disapplication of
5stamp duty land tax to Scotland, and
(b)
Part 2 makes provision, in consequence of the disapplication of
paragraph 1(1)(b) of Schedule 10 to the Finance Act 2003 (prescribed
information in land transaction returns) to transactions relating to land
in Scotland, about the supply of information to Her Majesty’s Revenue
10and Customs.
(4)
This section has effect in relation to land transactions with an effective date on
or after such date as is appointed by the Treasury under this subsection.
(5) But this section does not have effect in relation to any transaction—
(a)
effected in pursuance of a contract entered into and substantially
15performed on or before the date on which this Act receives Royal
Assent, or
(b)
effected in pursuance of a contract entered into on or before that date
and not excluded by subsection (6).
(6)
A transaction effected in pursuance of a contract entered into on or before the
20date on which this Act receives Royal Assent is excluded if—
(a)
there is any variation of the contract, or assignation of rights under the
contract, after that date,
(b)
the transaction is effected in consequence of the exercise after that date
of any option, right of pre-emption or similar right, or
(c)
25after that date there is an assignation, subsale or other transaction
relating to the whole or part of the subject-matter of the contract as a
result of which a person other than the purchaser under the contract
becomes entitled to call for a conveyance.
(1)
In Part 4A of the 1998 Act (as inserted by section 24), after Chapter 3 (inserted
by section 28) insert—
(1) 35A tax charged on disposals to landfill made in Scotland is a devolved tax.
(2) A disposal is a disposal to landfill if—
(a) it is a disposal of material as waste, and
(b) it is made by way of landfill.”
(2)
Tax may not be charged in accordance with the provision inserted by this
40section on a disposal if the disposal is made before the date appointed under
section 31(4).
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(1) Part 3 of the Finance Act 1996 (landfill tax) is amended as follows.
(2)
In section 40(1) (charge on taxable disposal), after “taxable disposal” insert
“made in England and Wales or Northern Ireland”.
(3)
5Schedule 5 contains further amendments relating to the disapplication of
landfill tax to Scotland.
(4)
This section has effect in relation to disposals made on or after such date as is
appointed by the Treasury under this subsection.
(1) The 1998 Act is amended as follows.
(2) Section 66 (borrowing by the Scottish Ministers etc) is amended as follows.
(3) For subsection (1) substitute—
“(1) The Scottish Ministers may borrow from the Secretary of State—
(a)
15any sums required by them for the purpose of meeting a temporary
excess of sums paid out of the Scottish Consolidated Fund over sums
paid into that Fund,
(b)
any sums required by them for the purpose of providing a working
balance in the Scottish Consolidated Fund, and
(c)
20any sums which in accordance with rules determined by the Treasury
are required by them to meet current expenditure because of a shortfall
in receipts from devolved taxes against forecast receipts.
(1A)
The Scottish Ministers may, with the approval of the Treasury, borrow by way
of loan any sums required by them for the purpose of meeting capital
25expenditure.
(1B)
A sum is required for the purpose of meeting capital expenditure if the
expenditure would be capital expenditure for the purposes of accounts under
section 70.”
(4) In subsection (3) after “section” insert “from the Secretary of State”.
(5) 30Section 67 (lending by the Secretary of State) is amended as follows.
(6) In subsection (2) for “that section” substitute “section 66(1)”.
(7) In subsection (3) omit “increased”.
(8) After subsection (3) insert—
“(3A)
An amount substituted under subsection (3) may be more or less than the
35amount for which it is substituted but may not be less than £500 million.”
(9) After section 67 insert—
(1)
The aggregate at any time outstanding in respect of the principal of sums
borrowed under section 66(1A) shall not exceed £2.2 billion.
Scotland BillPage 25
(2)
The Secretary of State may by order made with the consent of the Treasury
substitute for the amount (or substituted amount) specified in subsection (1)
such amount as may be specified in the order.
(3)
An amount substituted under subsection (2) may be more or less than the
5amount for which it is substituted but may not be less than £2.2 billion.
(4)
A person lending money to a member of the Scottish Government is not
bound to enquire whether the member of the Scottish Government has
power to borrow the money and is not to be prejudiced by the absence
of any such power.
(5)
10The Scottish Ministers may not mortgage or charge any of their
property as security for money which they have borrowed under
section 66(1A).
This is subject to section 66(2).
(6) Security given in breach of subsection (5) is unenforceable.”
(10)
15In Schedule 7 (procedure for subordinate legislation), in paragraph 1, at the
appropriate place insert—
| “Section 67A(2) | Type E”. |
(1) The 1998 Act is amended as follows.
(2)
In section 113 (subordinate legislation: scope of powers), for subsection (10)
substitute—
“(9A)
25A power may not be exercised so as to create any criminal offence
punishable with any of the penalties specified for the offence in
subsection (9B) or (10).
(9B) In relation to Scotland, the specified penalties are—
(a)
where the offence is triable on summary complaint only,
30imprisonment for a period exceeding 12 months and a fine
exceeding the amount specified as level 5 on the standard scale,
(b)
where an offence triable either on indictment or on summary
complaint is tried on summary complaint, imprisonment for a
period exceeding 12 months and a fine exceeding the statutory
35maximum,
(c)
where the offence is tried on indictment, imprisonment for a
period exceeding two years.
(10)
In relation to England and Wales and Northern Ireland, the specified
penalties are—
Scotland BillPage 26
(a)
where the offence is tried summarily, imprisonment for a
period exceeding three months and a fine exceeding the amount
specified as level 5 on the standard scale,
(b)
where the offence is tried on indictment, imprisonment for a
5period exceeding two years.”
(3) After subsection (11) of that section insert—
“(12)
Her Majesty may by Order in Council amend subsection (9B) or (10) so
as to change—
(a) any period of imprisonment specified there, or
(b) 10the amount of any fine so specified.”
(4)
In Schedule 7 (procedure for subordinate legislation), in paragraph 1, at the
appropriate place insert—
| “Section 113(12) | Type A”. |
(5)
The amendments made by paragraph 7 of Schedule 27 to the Criminal Justice
15Act 2003 (alteration of maximum penalties etc) have effect (when they come
into force) in relation to section 113 as amended by this section as they have
effect in relation to that section as originally enacted, except that in subsection
(10A)(c) the words “Scotland and” are omitted.
In this Act “the 1998 Act” means the Scotland Act 1998.
(1)
The Secretary of State may by order make provision consequential on any
provision of Part 1 or 2 or section 33.
(2)
25The Secretary of State may by order make transitional or saving provision in
connection with the coming into force of any provision of Part 1 or 2 or section
33.
(3) The Treasury may by order make—
(a) provision consequential on section 29 or 31;
(b)
30transitional or saving provision in connection with the coming into
force of any provision of Part 3.
(4)
Provision under this section may amend, repeal or revoke an enactment passed
or made before this Act is passed.
(5)
In this section “enactment” includes an enactment contained in subordinate
35legislation (within the meaning of the Interpretation Act 1978) and an
enactment contained in, or in an instrument made under, an Act of the Scottish
Parliament.
(6)
A statutory instrument containing an order under subsection (1) or (2) which
includes provision amending or repealing any provision of an Act or an Act of
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the Scottish Parliament may not be made unless a draft of the instrument has
been laid before and approved by a resolution of each House of Parliament.
(7)
Any other statutory instrument containing an order under subsection (1) or (2)
is subject to annulment in pursuance of a resolution of either House of
5Parliament.
(8)
A statutory instrument containing an order under subsection (3) which
includes provision amending or repealing any provision of an Act may not be
made unless a draft of the instrument has been laid before and approved by a
resolution of the House of Commons.
(9)
10Any other statutory instrument containing an order under subsection (3) is
subject to annulment in pursuance of a resolution of the House of Commons.
(1)
Where by virtue of an amendment made by this Act the 1998 Act provides for
an instrument to be subject to—
(a)
15the affirmative procedure specified in section 29 of the Interpretation
and Legislative Reform (Scotland) Act 2010 (asp 10)2010 (asp 10), or
(b) the negative procedure specified in section 28 of that Act,
subsection (2) applies at any time before that section comes into force.
(2)
The power to make the instrument is exercisable by Scottish statutory
20instrument and—
(a)
in the case of an instrument subject to the affirmative procedure, the
instrument is not to be made unless it has been laid before and
approved by a resolution of the Scottish Parliament;
(b)
in the case of an instrument subject to the negative procedure, the
25instrument is subject to annulment in pursuance of a resolution of the
Scottish Parliament.
(1)
There shall be paid out of money provided by Parliament any increase attributable to
this Act in the sums payable under any other Act out of money so provided.
(2)
30There shall be paid into the Consolidated Fund any sums received by a Minister of the
Crown by virtue of this Act which are not payable into the National Loans Fund.
(1) The following come into force on the day on which this Act is passed—
(a) sections 34 to 37;
(b) 35this section;
(c) section 39.
(2)
The following provisions come into force at the end of the period of two
months beginning with the day on which this Act is passed—
(a) section 14;
(b) 40Part 3, except section 26(7) (and Schedule 3) and section 32.
(3)
Subsection (2)(b) is subject to the provision made in the following sections as
to how those sections have effect—
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(a) sections 26(1) to (6) and 27;
(b) sections 28 and 29;
(c) sections 30 and 31.
(4)
The following provisions come into force on such day as the Treasury may by
5order made by statutory instrument appoint—
(a) section 26(7) and Schedule 3;
(b) section 32.
(5)
The other provisions of this Act come into force on such day as the Secretary of
State may by order made by statutory instrument appoint.
(6)
10The Secretary of State or the Treasury may appoint different days for different
purposes.
This Act may be cited as the Scotland Act 2011.
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Section 9
1
Schedule 1 to the 1998 Act (constituencies, regions and regional members) is
5amended as follows.
2
(1)
For “the Electoral Commission” or “the Boundary Committee” in each place
substitute “the Boundary Commission for Scotland”.
(2) Sub-paragraph (1) is subject to the amendments made by paragraphs 3 to 7.
3 10Omit paragraph 5 and the italic heading preceding it.
4 (1) Paragraph 7 is amended as follows.
(2) For sub-paragraph (2) substitute—
“(2)
If the Boundary Commission for Scotland have provisionally
determined to make recommendations affecting a constituency
15they must publish in at least one newspaper circulating in the
constituency a notice stating—
(a)
the effect of the proposed recommendations and (except if
the effect is that no alteration should be made in respect of
the constituency) that a copy of the recommendations is
20open to inspection at a specified place in the constituency,
and
(b)
that representations with respect to the proposed
recommendations may be made to the Commission before
the end of the period of one month starting the day after
25the notice is published.”
(3) Omit sub-paragraphs (5) and (6).
5 (1) Paragraph 8 is amended as follows.
(2) For sub-paragraph (1) substitute—
“(1)
This paragraph applies if the Boundary Commission for Scotland
30provisionally determine to make recommendations which would
involve any alteration in a constituency.”
(3) Omit sub-paragraph (3).
6 (1) Paragraph 12 is amended as follows.