(3) Subsection (1) does not apply where any poll is combined with the polls
at elections for membership of the Scottish Parliament.””

(4) After section 95 (control of donations to recognised third parties) insert—

“95ZA Control of donation to recognised third parties: power of Scottish
5Ministers

(1) The powers under the following provisions of Schedule 11 are
exercisable by the Scottish Ministers instead of the Secretary of State, so
far as they relate to polls at elections for membership of the Scottish
Parliament—

(a) 10paragraph 3(4) (power to change meaning of defined expenses
and sponsorship),

(b) paragraph 6A(6) (power to make regulations about how the
value of a benefit is calculated), and

(c) paragraph 6B(4) (power to make regulations about the retention
15of declarations).

(2) For the purposes of the exercise by the Scottish Ministers of the powers
mentioned in subsection (1), paragraphs 3, 6A and 6B of Schedule 11
apply as if any reference to the Secretary of State was a reference to the
Scottish Ministers.

(3) 20Subsection (1) does not apply where any other poll is combined with
the poll at an election for membership of the Scottish Parliament.””

(5) Section 95ZA inserted by subsection (4) has effect—

(a) until the coming into force of paragraph 1(2) of Schedule 3 to the
Political Parties and Elections Act 2009, with the omission of subsection
25(1)(b) and “6A” in subsection (2);

(b) until the coming into force of paragraph 4(2) of Schedule 4 to that Act,
with the omission of subsection (1)(c) and “and 6B” in subsection (2).

(6) Section 155 (power to vary specified sums or percentages) is amended as
follows.

(7) 30In subsection (1) at the beginning insert “Except where subsection (1A)
applies,”.

(8) After subsection (1) insert—

“(1A) The Scottish Ministers may by order vary any sum for the time being
specified in Part 5 or 6 so far as that sum applies in relation to an
35election the conduct of which is within the legislative competence of the
Scottish Parliament.””

(9) In subsection (2)—

(a) for the words before paragraph (a) substitute “An order under
subsection (1) or (1A) may be made either—”, and

(b) 40in paragraph (a) for “he” substitute “the person making the order”.

(10) After subsection (4) insert—

“(4A) Subsection (4B) applies in relation to the sums specified in Schedule 11.

(4B) In each session of the Scottish Parliament, other than a session that is
dissolved less than two years after the date of its first sitting, the
45Scottish Ministers must either—

(a) make an order in pursuance of subsection (2)(a), or

(b) lay before the Scottish Parliament a statement setting out the
Scottish Ministers’ reasons for not doing so.””

(11) Section 156 (orders and regulations) is amended as follows.

(12) 5After subsection (4A) insert—

“(4B) Subject to subsections (4C) and (4D), any order or regulations made
under this Act by the Scottish Ministers shall be subject to the negative
procedure in the Scottish Parliament.

(4C) Subsection (4B) does not apply to an order falling within subsection (3).

(4D) 10Subsection (4B) does not apply to an order falling within subsection (4),
and any such order made by the Scottish Ministers shall be subject to
the affirmative procedure in the Scottish Parliament.””

(13) In subsection (5) after each “Secretary of State” insert “or the Scottish
Ministers”.

(14) 15In the Interpretation and Legislative Reform (Scotland) Act 2010, in section
30(4) (other instruments laid before the Parliament: exceptions) after
paragraph (f) insert—

“(fa) section 155(2)(a) of the Political Parties, Elections and
Referendums Act 2000 (c.41)2000 (c.41),”.”

8 20Review of electoral boundaries by the Local Government Boundary
Commission for Scotland

(1) Schedule 1 to the Scotland Act 1998 is amended as follows.

(2) In paragraphs 3, 4, 7 to 10, 12 and 14 “the Boundary Commission for Scotland”
in each place substitute “the Local Government Boundary Commission for
25Scotland”.

(3) In paragraphs 3 to 7 for “the Secretary of State” in each place, and for “he” in
paragraphs 3(9) and 6(1), substitute “the Scottish Ministers”.

(4) In paragraphs 3 to 7 for—

(a) “each House of Parliament”, “either House of Parliament” or “the
30House” in each place, and

(b) “Parliament” in all other places, except in paragraph 6(7),

substitute “the Parliament”.

(5) In paragraph 3(4)—

(a) before “under this paragraph” insert “to the Scottish Ministers”;

(b) 35for “not later than 30 June 2010” substitute “no earlier than 1 May 2018
and no later than 1 May 2022”.

(6) In paragraph 3(6) omit “(but not before the submission of their first report)”.

(7) Omit paragraph 3(11).

(8) In paragraph 6(1) for “thinks” substitute “think”.

9 Minor and consequential amendments: elections etc

(1) This section makes minor and consequential amendments in relation to
elections and related matters.

(2) The Scotland Act 1998 is amended as follows.

(3) 5In Schedule 4, omit paragraph 4(2A) and (2B) (voting age).

(4) In Part 1 of Schedule 5, omit paragraph 5A (referendums).

(5) In the Scotland Act 2012, omit sections 1 and 2.

(6) In the Scottish Parliament (Elections etc.) Order 2010, omit article 13.

(7) The Scotland Act 1998 (Modification of Schedules 4 and 5 and Transfer of
10Functions to the Scottish Ministers) Order 2015 (S.I. 2015/692S.I. 2015/692) is revoked.

Legislation by the Parliament

10 Super-majority requirement for certain legislation

(1) The Scotland Act 1998 is amended as follows.

(2) Section 31 (scrutiny of Bills before introduction) is amended as follows.

(3) 15In the heading for “before introduction” substitute “for legislative competence
and protected subject-matter”

(4) After subsection (2) insert—

“(2A) The Presiding Officer shall, after the last time when a Bill may be
amended but before the decision whether to pass or reject it, decide
20whether or not in his view the provisions of the Bill relate to a protected
subject-matter and state his decision.””

(5) At the end insert—

“(4) For the purposes of this Part a provision of a Bill relates to a protected
subject-matter if it would modify, or confer power to modify, any of the
25matters listed in subsection (5) (but not if the provision is incidental to
or consequential on another provision of the Bill).

(5) The matters are—

(a) the persons entitled to vote as electors at an election for
membership of the Parliament,

(b) 30the system by which members of the Parliament are returned,

(c) the number of constituencies, regions or any equivalent
electoral area, and

(d) the number of members to be returned for each constituency,
region or equivalent electoral area.””

(6) 35After that section insert—

“31A Two-thirds majority for Bills relating to a protected subject matter

If the Presiding Officer states under section 31(2A) that in his view the
provisions of a Bill relate to a protected subject-matter, the Bill is not
passed unless the number of members voting in favour of it at the final

stage is at least two-thirds of the total number of seats for members of
the Parliament.””

(7) In section 32 (submission of Bills for Royal Assent) in subsection (2)(a) after
“under section” insert “32A or”.

(8) 5After that section insert—

“32A Scrutiny of Bills by the Supreme Court (protected subject-matter)

(1) The Advocate General, the Lord Advocate or the Attorney General may
refer the question of whether a Bill or any provision of a Bill relates to
a protected subject-matter to the Supreme Court for decision.

(2) 10Subject to subsection (3), he may make a reference in relation to a Bill—

(a) at any time during the period of four weeks beginning with the
rejection of the Bill, if the Presiding Officer has made a
statement under section 31(2A) that in his view the provisions
of the Bill relate to a protected subject-matter, and

(b) 15at any time during the period of four weeks beginning with the
passing of the Bill, if the Presiding Officer has made a statement
under section 31(2A) that in his view the provisions of the Bill
do not relate to a protected subject-matter.

(3) He shall not make a reference in relation to a Bill if he has notified the
20Presiding Officer that he does not intend to make a reference in relation
to the Bill, unless the Bill has since the notification been approved in
accordance with standing orders made by virtue of section 36(4)(aa) or
(4A).””

(9) In the heading to section 33 after “Supreme Court” insert “(legislative
25competence)”.

(10) Section 36 (stages of Bills) is amended as follows.

(11) In subsection (4) after paragraph (a) insert—

“(aa) where section 32A(2)(b) applies, the Supreme Court decides
that the Bill or any provision of the Bill relates to a protected
30subject-matter, or that the Bill or any provision of the Bill does
not relate to a protected subject-matter,”.”

(12) After that subsection insert—

“(4A) Standing orders shall provide for an opportunity for the
reconsideration of a Bill after its rejection if (and only if), where section
3532A(2)(a) applies, the Supreme Court decides that the Bill or any
provision of the Bill does not relate to a protected subject-matter.””

(13) In subsections (5) and (6) after “reconsideration” insert “in accordance with
standing orders made by virtue of subsection (4)(a), (b) or (c)”.

(14) After those subsections insert—

“(7) 40Standing orders shall, in particular, ensure that any Bill reconsidered in
accordance with standing orders made by virtue of subsection (4)(aa)
or (4A), is subject to a final stage at which it can be approved or rejected.

(8) References in sections 28(2), 31(2A), 31A, 32A(2)(a) and (b) and 38(1)(a)
and paragraph 7 of Schedule 3 to the passing of a Bill shall, in the case
45of a Bill which has been reconsidered in accordance with standing

orders made by virtue of subsection (4)(aa) or (4A), be read as
references to the approval of the Bill.””

11 Scope to modify the Scotland Act 1998

(1) The Scotland Act 1998 is amended as follows.

(2) 5In paragraph 4 of Schedule 4 (protection of Scotland Act 1998 from
modification) for sub-paragraph (2) substitute—

“(2) This paragraph does not apply to modifying—

(a) the following sections in Part 1 (the Scottish Parliament)—

(i)(i) section 1(2) to (5),

(ii) 10section 2(1), (2) and (3) to (6),

(iii) sections 3 to 11,

(iv) section 12(1) to (3) and (5) to (7),

(v) sections 13 to 22,

(vi) sections 24 to 26,

(vii) 15section 27(1) and (2),

(viii) section 28(5),

(ix) section 36(1)(a) and (b), and (2) and (3), and

(x) sections 39 to 42,

(b) the following sections in Part 2 (the Scottish
20Administration)—

(i)(i) section 44(1B)(a) and (b), and (2),

(ii) section 45(3) to (7),

(iii) section 46(1) to (3),

(iv) section 47(3)(b) to (e),

(v) 25section 48(2) to (4), and

(vi) section 49(2) and (4)(b) to (e), and

(vii) section 50,

(c) in Part 3 (financial provisions), section 69(3),

(d) in Part 5 (miscellaneous and general), sections 81 to 83 and 85,
30sections 91, 93, 94 and 97,

(e) the following provisions in Part 6 (supplementary)—

(i) section 113 (except the application of subsection (9)),
section 115 and Schedule 7 (so far as those sections
and that Schedule apply to any power in this Act of
35the Scottish Ministers to make subordinate
legislation), and

(ii) sections 118, 120 and 121.

(f) Schedule 1 (constituencies, regions and regional members),

(g) paragraphs 1, 2(1) and 3 to 6 of Schedule 2 (Scottish
40Parliamentary corporate body), and

(h) paragraphs 1 to 6 of Schedule 3 (standing orders - further
provision).””

(3) In paragraph 1 of Schedule 7 (procedure for subordinate legislation) in the
entry for section 97 for “Type A” substitute “Type D”.

Part 2 Tax

Income tax

12 Power of Scottish Parliament to set rates of income tax

(1) 5Section 80C of the Scotland Act 1998 (power to set a Scottish rate for Scottish
taxpayers) is amended as follows.

(2) In subsection (1) (power to set Scottish rate) for the words from “the Scottish rate” to
the end substitute “the Scottish basic rate, and any other rates, for the purposes of
section 11A of the Income Tax Act 2007 (which provides for the income of Scottish
10taxpayers which is charged at those rates)”.

(3) For subsection (2) substitute—

“(2A) Where a Scottish rate resolution sets more than one rate it must also set limits
or make other provision to enable it to be ascertained, for the purposes of that
section, which rates apply in relation to a Scottish taxpayer.

(2B) 15But a Scottish rate resolution may not provide for different rates to apply in
relation to different types of income.

(2C) In this Chapter a “Scottish rate” means a rate set by a Scottish rate
resolution.””

(4) Omit subsection (4).

(5) 20In subsection (5) (Scottish rate to be a whole number or half a whole number)—

(a) for “The” substitute “A”, and

(b) at the end insert “, or zero”.

(6) In the title for “rate” substitute “rates”.

(7) Other provisions of Part 4A of the Scotland Act 1998 are amended as follows.

(8) 25In section 80A(1)(a) (overview of Part 4A) after “rate” insert “or rates”.

(9) Section 80G (supplemental powers to modify enactments) is amended as
follows.

(10) In subsection (1) (power to modify section 11A of the Income Tax Act 2007)—

(a) in the words before paragraph (a) for “the Scottish basic, higher and
30additional” substitute “Scottish”, and

(b) in paragraph (a) for “the rates provided for under the section”
substitute “Scottish rates”.

(11) In subsection (1A) (power to modify references to certain rates of income tax in
relation to Scottish taxpayers) for the words after “enactment” substitute “so as
35to make any provision that they consider necessary or expedient in
consequence of or in connection with—

(a) the powers of the Parliament under section 80C;

(b) a Scottish rate resolution”.

(12) In subsection (1B) (power to postpone effect of Scottish rate etc in relation to

PAYE regulations) for paragraphs (a) and (b) substitute—

“(a) provision made by a Scottish rate resolution for a tax year,

(b) the absence of particular provision in a Scottish rate resolution
for a tax year, or

(c) 5the absence of a Scottish rate resolution for a tax year,”.”

(13) In section 80HA(3)(b) (report by the Comptroller and Auditor General:
meaning of “Scottish rate provisions”) for the words from “the Scottish basic
rate” to the end substitute “a Scottish rate”.

(14) This section comes into force on such day as the Treasury may by regulations
10appoint.

(15) The amendments made by this section have effect in relation to the tax year
appointed by the Treasury by regulations and subsequent tax years.

(16) The tax year appointed under subsection (15) must begin on or after the day
appointed under subsection (14).

13 15Amendments of Income Tax Act 2007

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

(2) Section 6 (rates at which income tax is charged) is amended as follows.

(3) In subsection (3) omit paragraph (za).

(4) After that subsection insert—

“(4) 20See also section 80C of the Scotland Act 1998 which makes provision for
the purposes of section 11A (income charged at Scottish rates).””

(5) Omit section 6A (the Scottish basic, higher and additional rates).

(6) In section 10(4) for “the Scottish basic, higher and additional” substitute
“Scottish”.

(7) 25Section 11A (income charged at the Scottish basic, higher and additional rates)
is amended as follows.

(8) For subsections (1) to (3) substitute—

“(1A) Income tax is charged at Scottish rates on the non-savings income of a Scottish
taxpayer.””

(9) 30In subsection (6) for the words after “determining” substitute “which part of a
Scottish taxpayer’s income consists of savings income”.

(10) In the title for “the Scottish basic, higher and additional” substitute “Scottish”.

(11) In section 13 (income charged at dividend rates)—

(a) in subsection (1)(b) omit “or the Scottish basic rate,”,

(b) 35in subsection (2)(b) omit “or the Scottish higher rate,”,

(c) in subsection (2A)(b) omit “or the Scottish additional rate,”,

(d) in subsection (4) omit “or the Scottish basic, higher or additional rate”,
and

(e) after subsection (4) insert—

“(5) In relation to an individual who is a Scottish taxpayer,
references in this section to income that would otherwise be
charged at a particular rate are to be read as references to
5income that would, if the individual were not a Scottish
taxpayer, be charged at that rate (and subsection (4) is to be read
accordingly).””

(12) For section 16(1)(za) (purposes for which section 16 has effect in relation to
income tax of a Scottish taxpayer) substitute—

“(za) 10which part of a Scottish taxpayer’s income consists of savings
income,”.”

(13) In section 989 (definitions for the purposes of the Income Tax Acts)—

(a) omit the definitions of “Scottish additional rate” and “Scottish higher
rate”,

(b) 15in the definition of “Scottish basic rate”, for the words after “Scottish
basic rate” substitute “in relation to a tax year, means the Scottish basic
rate set by a Scottish rate resolution for that year”,

(c) at the appropriate place insert—

• “““Scottish rate” in relation to a tax year, means a rate set by
  20a Scottish rate resolution for that year,”, and”

• “““Scottish rate resolution” means a resolution of the
  Scottish Parliament under section 80C of the Scotland
  Act 1998,”.”

(14) In Schedule 4 (index of defined expressions)—

(a) 25omit the entries relating to the Scottish additional rate and the Scottish
higher rate,

(b) in the entry relating to the Scottish basic rate for “6A (as applied by
section 989)” substitute “989”,

(c) at the appropriate place insert—

(d) at the appropriate place insert—

(15) The amendments made by this section—

(a) 35come into force on the day appointed by the Treasury under section
12(14), and

(b) have effect in relation to the tax year appointed by the Treasury under
section 12(15) and subsequent tax years.

14 Consequential amendments: income tax

(1) 40In section 110(2) of the Scotland Act 1998 (Scottish taxpayers: rates of income
tax for social security purposes) for the words from “the Scottish basic rate” to

“Scottish taxpayers” substitute “a Scottish rate (within the meaning of the
Income Tax Acts)”.

(2) Section 4 of the Taxation of Chargeable Gains Act 1992 (rates of capital gains
tax) is amended as follows.

(3) 5In subsections (4) and (5) omit “, the Scottish higher rate”.

(4) At the end insert—

“(10) For the purposes of the following references, an individual who is a
Scottish taxpayer is to be treated as if the individual were not a Scottish
taxpayer—

(a) 10the references in subsections (4) and (5) to income tax being
chargeable at the higher rate;

(b) the reference in subsection (7) to the basic rate limit.

(11) Section 4A(5) is to be read accordingly.””

(5) In section 4A(5) of that Act (section 4: special cases) omit “, the Scottish higher
15rate”.

(6) In consequence of the amendments made by sections 12, 13 and this section
omit the following provisions of Schedule 38 to the Finance Act 2014—

(a) paragraph 2(b);

(b) paragraph 3;

(c) 20paragraph 6(a) to (c) and (e);

(d) paragraph 7;

(e) paragraph 15(2) and (3);

(f) paragraph 16(2) and (8).

(7) The amendments made by this section—

(a) 25come into force on the day appointed by the Treasury under section
12(14), and

(b) have effect in relation to the tax year appointed by the Treasury under
section 12(15) and subsequent tax years.

(8) The Treasury may by regulations make—

(a) 30such consequential provision as they consider appropriate in
connection with any provision of section 12 or 13;

(b) such transitional or saving provision as they consider appropriate in
connection with the coming into force of any provision of section 12 or
13 or subsections (1) to (6).

(9) 35Regulations under this section may amend, repeal, revoke or otherwise modify
an enactment, whenever passed or made (including this Act).

(10) The following are subject to any provision made by virtue of subsection
(8)(b)—

(a) subsection (7);

(b) 40section 12 (15);

(c) section 13(15).

(11) Regulations under this section must be made by statutory instrument.

(12) A statutory instrument containing regulations under this section which
includes provision amending or repealing a 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.

(13) Any other statutory instrument containing regulations under this section, if
made without a draft having been approved by a resolution of the House of
5Commons, is subject to annulment in pursuance of a resolution of the House of
Commons.

(14) In this section “enactment” includes an enactment contained in subordinate
legislation (within the meaning of the Interpretation Act 1978).

Value added tax

15 10Assignment of VAT

(1) The Scotland Act 1998 is amended as follows.

(2) In section 64 (Scottish Consolidated Fund), after subsection (2) insert—

“(2A) The Secretary of State shall in accordance with section 64A pay into the Fund
out of money provided by Parliament any amounts payable under that
15section.””

(3) After that section insert—

“64A Assignment of VAT

(1) Where there is an agreement between the Treasury and the Scottish Ministers
for identifying an amount agreed to represent the standard rate VAT
20attributable to Scotland for any period (“the agreed standard rate amount”),
the amount described in subsection (3) is payable under this section in respect
of that period.

(2) Where there is an agreement between the Treasury and the Scottish Ministers
for identifying an amount agreed to represent the reduced rate VAT
25attributable to Scotland for that period (“the agreed reduced rate amount”),
the amount described in subsection (4) is payable under this section in respect
of that period.

(3) The amount payable in accordance with subsection (1) is the amount obtained
by multiplying the agreed standard rate amount by—

30

where SR is the number of percentage points in the rate at which value added
tax is charged under section 2(1) of the Value Added Tax Act 1994 for the
period.

(4) 35The amount payable in accordance with subsection (2) is the amount obtained
by multiplying the agreed reduced rate amount by—