Scotland Bill (HC Bill 164)

(b) for at least part of the year, T’s main place of residence in the UK
is in that part of the UK,

(c) the times in the year when T’s main place of residence is in that
part of the UK comprise (in aggregate) at least as much of the
5year as the times when T’s main place of residence is in any one
other part of the UK, and

(d) for at least part of the year, T lives at a place of residence in that
part of the UK.

(4) In this section “place” includes a place on board a vessel or other means
10of transport.

80F Days spent in Scotland or another part of the UK

(1) T spends more days of a year in Scotland than in any other part of the
UK if (and only if)—

(a) the number of days in the year on which T is in Scotland at the
15end of the day

equals or exceeds

(b) the number of days in the year on which T is in any other part
of the UK at the end of the day.

(2) But T is not to be treated as being in the UK at the end of a day if—

(a) 20on that day T arrives in the UK as a passenger,

(b) T departs from the UK on the next day, and

(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.

80G 25Supplemental powers to modify enactments

(1) The 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
30as they consider necessary or expedient in consequence of or in
connection 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) 35An order under subsection (2) may, in particular, provide that a
Scottish 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) 40such date (falling after the date of the resolution) as may be
specified 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.

80H Reimbursement of expenses

The 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
52011 by the Minister or department.”

(4) The repeal by subsection (2) of Part 4 of the 1998 Act has effect so that a tax-
varying resolution may not be passed so as to relate to any tax year following
such tax year as is appointed by the Treasury by order under this subsection
(as the last year for which that Part is to have effect).

(5) 10A 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
Treasury by order 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
15appointed under subsection (5).

(7) Schedule 3 (which contains other amendments relating to the power to set a
Scottish rate of income tax) has effect.

27 Income tax for Scottish taxpayers

(1) The Income Tax Act 2007 is amended as follows.

(2) 20In 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 income of a Scottish taxpayer is to be found as follows.

25Step 1

Take the basic rate, higher rate or additional rate determined as such
under subsection (2).

Step 2

Deduct 10 percentage points.

30Step 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) 35In 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
40rates 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) In 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) 5In section 809H (charge on nominated income of long-term UK resident), after
subsection (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) 10In section 1 of the Provisional Collection of Taxes Act 1968 (temporary
statutory 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
15(within the meaning of Chapter 2 of Part 4A of the Scotland Act 1998)
as 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.

20Scottish tax on land transactions

28 Scottish tax on transactions involving interests in land

(1) In Part 4A of the 1998 Act (as inserted by section 24), after Chapter 2 (inserted
by section 26) insert—

“CHAPTER 3 Tax on transactions involving interests in land

80I 25Tax on transactions involving interests in land

(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) the acquisition of the benefit of an obligation, restriction or
30condition 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,
35and

(c) regardless of where any party to the transaction is or is resident.

80J Certain transactions not taxable

(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
section 80I—

(none) Government

A Minister of the Crown

5The Scottish Ministers

A Northern Ireland department

The Welsh Ministers, the First Minister for Wales and
the Counsel General to the Welsh Assembly
Government

(none) 10Parliament etc

The Corporate Officer of the House of Lords

The Corporate Officer of the House of Commons

The Scottish Parliamentary Corporate Body

The Northern Ireland Assembly Commission

15The National Assembly for Wales Commission

The National Assembly for Wales.”

(2) Tax 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
20relation to that transaction.

29 Disapplication of UK stamp duty land tax

(1) Part 4 of the Finance Act 2003 (stamp duty land tax) is amended as follows.

(2) In section 48 (chargeable interests), in subsection (1)(a) for “the United
Kingdom” substitute “England and Wales or Northern Ireland”.

(3) 25In Schedule 4—

(a) Part 1 contains further amendments relating to the disapplication of
stamp 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
30information in land transaction returns) to transactions relating to land
in Scotland, about the supply of information to Her Majesty’s Revenue
and 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 by order under this
35subsection.

(5) But this section does not have effect in relation to any transaction—

(a) effected in pursuance of a contract entered into and substantially
performed on or before the date on which this Act receives Royal
Assent, or

(b) 40effected 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
date on which this Act receives Royal Assent is excluded if—

(a) there is any variation of the contract, or assignation of rights under the
45contract, 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) after 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
5result of which a person other than the purchaser under the contract
becomes entitled to call for a conveyance.

Scottish tax on disposals to landfill

30 Scottish tax on disposals to landfill

(1) In Part 4A of the 1998 Act (as inserted by section 24), after Chapter 3 (inserted
10by section 28) insert—

“CHAPTER 4 Tax on disposals to landfill

80K Tax on disposals to landfill

(1) A tax charged on disposals to landfill made in Scotland is a devolved
tax.

(2) 15A 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
section on a disposal if the disposal is made before the date appointed under
20section 31(4).

31 Disapplication of UK landfill tax

(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) 25Schedule 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 by order under this subsection.

Borrowing

32 30Borrowing by the Scottish Ministers

(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) any 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
5working balance in the Scottish Consolidated Fund, and

(c) any 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) 10The 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 expenditure.

(1B) A sum is required for the purpose of meeting capital expenditure if the
expenditure would be capital expenditure for the purposes of accounts
15under section 70.”

(4) In subsection (3) after “section” insert “from the Secretary of State”.

(5) Section 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) 20After subsection (3) insert—

“(3A) An amount substituted under subsection (3) may be more or less than
the amount for which it is substituted but may not be less than £500
million.”

(9) After section 67 insert—

“67A 25Lending for capital expenditure

(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.

(2) The Secretary of State may by order made with the consent of the
Treasury substitute for the amount (or substituted amount) specified in
30subsection (1) such amount as may be specified in the order.

(3) An amount substituted under subsection (2) may be more or less than
the amount 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
35bound 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) The Scottish Ministers may not mortgage or charge any of their
property as security for money which they have borrowed under
40section 66(1A).

This is subject to section 66(2).

(6) Security given in breach of subsection (5) is unenforceable.”

(10) In Schedule 7 (procedure for subordinate legislation), in paragraph 1, at the

appropriate place insert—

Part 4 Miscellaneous and General

5Miscellaneous

33 Maximum penalties which may be specified in subordinate legislation

(1) The 1998 Act is amended as follows.

(2) In section 113 (subordinate legislation: scope of powers), for subsection (10)
substitute—

“(9A) 10A 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,
15imprisonment for a period exceeding 12 months and a fine
exceeding 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
20maximum,

(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—

(a) 25where the offence is tried summarily, imprisonment for a
period exceeding three months and a fine exceeding—

(i) in the case of a summary offence, level 5 on the standard
scale,

(ii) in the case of an offence triable either way, the statutory
30maximum,

(b) where the offence is tried on indictment, imprisonment for a
period 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
35as to change—

(a) any period of imprisonment specified there, or

(b) the amount of any fine so specified.”

(4) In Schedule 7 (procedure for subordinate legislation), in paragraph 1, at the

appropriate place insert—

(5) The amendments made by paragraph 7 of Schedule 27 to the Criminal Justice
Act 2003 (alteration of maximum penalties etc) have effect (when they come
5into 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.

General

34 Interpretation

10In this Act “the 1998 Act” means the Scotland Act 1998.

35 Orders

Any power to make an order conferred by this Act is exercisable by statutory
instrument.

36 Power to make consequential, transitional and saving provision

(1) 15The Secretary of State may by order make provision consequential on any
provision of Part 1 or 2 or section 33.

(2) The 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) 20The Treasury may by order make—

(a) provision consequential on section 29 or 31;

(b) transitional 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
25or made before this Act is passed.

(5) In this section “enactment” includes an enactment contained in subordinate
legislation (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) 30A 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
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)
35is subject to annulment in pursuance of a resolution of either House of
Parliament.

(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) Any other statutory instrument containing an order under subsection (3) is
subject to annulment in pursuance of a resolution of the House of Commons.

37 5Transitional provision for Scottish statutory instruments

(1) Where by virtue of an amendment made by this Act the 1998 Act provides for
an instrument to be subject to—

(a) the affirmative procedure specified in section 29 of the Interpretation
and Legislative Reform (Scotland) Act 2010 (asp 10)2010 (asp 10), or

(b) 10the 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
instrument and—

(a) in the case of an instrument subject to the affirmative procedure, the
15instrument 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
instrument is subject to annulment in pursuance of a resolution of the
Scottish Parliament.

38 20Financial provisions

(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) There shall be paid into the Consolidated Fund any sums received by a
25Minister of the Crown by virtue of this Act which are not payable into the
National Loans Fund.

39 Commencement

(1) The following come into force on the day on which this Act is passed—

(a) sections 34 to 38;

(b) 30this section;

(c) section 40.

(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) 35Part 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—

(a) sections 26(1) to (6) and 27;

(b) sections 28 and 29;

(c) 40sections 30 and 31.

(4) The following provisions come into force on such day as the Treasury may by
order 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 appoint.

(6) 5The Secretary of State or the Treasury may appoint different days for different
purposes.

40 Short title

This Act may be cited as the Scotland Act 2011.