(5) In subsection (4) after “the Secretary of State” insert “and the Scottish
Ministers”.

(6) In subsection (6)(b) after “the Secretary of State” insert “with the agreement of
the Scottish Ministers”.

(7) 5In Schedule 19 (Gaelic Media Service: supplementary provisions), paragraph
12 (annual reports) is amended as follows.

(8) In sub-paragraph (3) for the words from “the Secretary of State” to the end
substitute—

“(a) the Secretary of State, who must lay copies of it before each
10House of Parliament, and

(b) the Scottish Ministers, who must lay a copy of it before the
Scottish Parliament.”

(9) Sub-paragraph (4) is omitted.

(10) In the Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc)
15Order 1999 (S.I. 1999/1750S.I. 1999/1750)—

(a) in Schedule 1 (functions transferred to the Scottish Ministers), omit the
entry relating to section 183 of the Broadcasting Act 1990;

(b) in Schedule 2 (functions made exercisable concurrently), omit the
reference to paragraph 12(3) of Schedule 19 to that Act;

(c) 20in Schedule 5 (modification of enactments), omit paragraph 10(4).

18 Crown Estate Commissioner with special responsibility for Scotland

(1) In Schedule 1 to the Crown Estate Act 1961 (constitution etc of Crown Estate
Commissioners), paragraph 1 is amended as follows.

(2) After sub-paragraph (3) insert—

“(3A) 25One of the Commissioners shall be appointed as the Crown Estate
Commissioner with special responsibility for Scotland, who must be
a person who knows about conditions in Scotland as they relate to
the functions of the Commissioners.”

(3) After sub-paragraph (4) insert—

“(4A) 30The Crown Estate Commissioner with special responsibility for
Scotland shall be appointed on the recommendation of the
Chancellor of the Exchequer, who shall consult the Scottish Ministers
before making that recommendation.”

19 Misuse of drugs

(1) 35The Misuse of Drugs Act 1971 is amended as follows.

(2) In section 10 (power to make regulations for preventing misuse of controlled
drugs)—

(a) in subsection (2)(i) for “Secretary of State” substitute “appropriate
authority”;

(b) 40after subsection (2) insert—

“(3) Regulations made in pursuance of subsection (2)(i) must secure
that under any licence a doctor may—

(a) administer, supply or prescribe a controlled drug, or

(b) authorise the administration or supply of a controlled
drug,

only while at an address specified in the licence.

(4) 5The appropriate authority for the purposes of subsection (2)(i)
is—

(a) where the specified address for the purposes of
subsection (3) is in Scotland, the Scottish Ministers;

(b) otherwise, the Secretary of State.”

(3) 10In section 13 (directions where regulations or licence contravened) after
subsection (1) insert—

“(1A) In relation to regulations made in pursuance of section 10(2)(i) or to a
licence under those regulations, the reference in subsection (1) to the
Secretary of State is to be read as a reference to the appropriate
15authority.

(1B) The appropriate authority for the purposes of subsection (1A) is—

(a) in relation to a contravention taking place in Scotland, the
Scottish Ministers;

(b) otherwise, the Secretary of State.”

(4) 20In section 14 (investigation where grounds for direction under section 13 are
considered to exist) after subsection (1) insert—

“(1A) In relation to section 13(1), references in this section to the Secretary of
State are to be read in accordance with section 13(1A).”

(5) In section 16 (provisions supplementary to sections 14 and 15) after subsection
25(1) insert—

“(1A) Where in accordance with section 14(1A) a case is referred to a tribunal
or advisory body by the Scottish Ministers—

(a) references in this section and Schedule 3 to the Secretary of State
are to be read as references to the Scottish Ministers, and

(b) 30references in that Schedule to the approval of the Treasury do
not apply.”

(6) In section 30 (licences and authorities)—

(a) at the beginning insert “(1)”;

(b) at the end insert—

“(2) 35Subsection (1) applies to a licence issued by the Scottish
Ministers under regulations made in pursuance of section
10(2)(i) as if references in that subsection to the Secretary of
State were references to the Scottish Ministers.”

(7) In paragraph 4 of Schedule 3 (tribunal rules) at the end add—

“(4) 40Where the Scottish Ministers have power to make rules under this
paragraph (by virtue of section 16(1A) or otherwise)—

(a) sub-paragraph (3) does not apply, and

(b) the rules are subject to the negative procedure.”

20 Power to prescribe drink-driving limits

(1) The Road Traffic Act 1988 is amended as follows.

(2) Section 8 (choice of specimens of breath) is amended as follows.

(3) In subsection (3), for “The Secretary of State may by regulations” substitute
5“Regulations may”.

(4) After subsection (3) insert—

“(4) Regulations under subsection (3) may be made—

(a) by the Secretary of State, in relation to cases where the
suspected offence is an offence committed in England and
10Wales;

(b) by the Scottish Ministers, in relation to cases where the
suspected offence is an offence committed in Scotland.”

(5) Section 11 (interpretation of sections 3A to 10) is amended as follows.

(6) In the definition of “the prescribed limit” in subsection (2), omit “made by the
15Secretary of State”.

(7) After subsection (2) insert—

“(2ZA) Regulations under subsection (2) may be made—

(a) by the Secretary of State, in relation to driving or attempting to
drive, or being in charge of a vehicle, in England and Wales;

(b) 20by the Scottish Ministers, in relation to driving or attempting to
drive, or being in charge of a vehicle, in Scotland.”

(8) Section 195 (provisions as to regulations) is amended as follows.

(9) After subsection (2) insert—

“(2A) Before making any regulations under this Act the Scottish Ministers
25must consult with such representative organisations as they think fit.”

(10) After subsection (4) insert—

“(4A) Regulations made by the Scottish Ministers under section 8(3) or 11(2)
are subject to the affirmative procedure.”

21 Speed limits

(1) 30The Road Traffic Regulation Act 1984 is amended as follows.

(2) Section 17 (traffic regulation on special roads) is amended as follows.

(3) In subsection (2) for “The Secretary of State may make regulations” substitute
“Regulations may make provision”.

(4) After subsection (3) insert—

“(3ZA) 35The power to make provision of the following kinds by regulations
under subsection (2) is exercisable by the Scottish Ministers—

(a) provision with respect to a particular special road in Scotland;

(b) provision for regulating the speed of vehicles on special roads
in Scotland.

(3ZB) The power to make provision of any other kind by regulations under
subsection (2) is exercisable by the Secretary of State.

(3ZC) In relation to special roads in Scotland that power of the Secretary of
State is exercisable only after consultation with the Scottish Ministers.

(3ZD) 5Regulations made by the Scottish Ministers under subsection (2) are
subject to the negative procedure.”

(5) In subsection (3A)—

(a) the words from “the National Park Authority” to the end become
paragraph (a), and

(b) 10after that paragraph insert “, and

(b) such representative organisations as they think fit.”

(6) Section 64 (general provision as to traffic signs) is amended as follows.

(7) After subsection (2) insert—

“(2A) The functions under this section that are exercisable by the Scottish
15Ministers instead of the Secretary of State include the function of
making regulations under subsection (1)(a) specifying signs for a
Scottish national speed limit.

(2B) The function of making such regulations is exercisable only with the
agreement of the Secretary of State.

(2C) 20“Scottish national speed limit” means any of these—

(a) a speed limit that, by virtue of regulations under section 17(2)
made by the Scottish Ministers, is to be observed—

(i) on all special roads,

(ii) on all special roads provided for the use of particular
25classes of traffic,

(iii) on all special roads other than special roads of such
description as may be specified in the regulations, or

(iv) as mentioned in sub-paragraph (i), (ii) or (iii) except for
such lengths of special road as may be specified in the
30regulations;

(b) a speed limit that, by virtue of an order under section 88 made
by the Scottish Ministers, is to be observed on all roads, on all
roads of any class specified in the order or on all roads other
than roads of any class so specified.”

(8) 35After subsection (6) insert—

“(7) Regulations made by the Scottish Ministers under subsection (1)(a) are
subject to the negative procedure.

(8) Before making any regulations under subsection (1)(a) the Scottish
Ministers must consult with such representative organisations as they
40think fit.”

(9) Section 88 (temporary speed limits with power to continue indefinitely) is
amended as follows.

(10) For “the Secretary of State” in each place substitute “the national authority”.

(11) In subsection (1)—

(a) for “he” substitute “the authority”;

(b) for “his” substitute “the”.

(12) In subsection (4) omit the words from “made by statutory instrument” to the
end.

(13) 5After subsection (7) insert—

“(7A) The national authority in this section—

(a) in relation to roads in England and Wales, is the Secretary of
State;

(b) in relation to roads in Scotland, is the Scottish Ministers.”

(14) 10In subsection (8) after “subsection (1)(b)” insert “by the Secretary of State”.

(15) After subsection (8) insert—

“(9) The power of the Scottish Ministers to make an order under subsection
(1) is not to be exercisable by Scottish statutory instrument.

(10) The first order to be made under subsection (1)(b) by the Scottish
15Ministers shall not be made until a draft of the order has been laid
before the Scottish Parliament and approved by it.

(11) The power of the Secretary of State to make an order under subsection
(4) is exercisable by statutory instrument which shall be subject to
annulment in pursuance of a resolution of either House of Parliament.

(12) 20An order made by the Scottish Ministers under subsection (4) is subject
to the negative procedure.”

22 Speed limits: supplementary

(1) The Scotland Act 1998 (Transfer of Functions to the Scottish Ministers etc)
Order 1999 (S.I. 1999/1750S.I. 1999/1750) is amended as follows.

(2) 25In Schedule 3 (functions exercisable after consultation), in the entry for the
Road Traffic Regulation Act 1984—

(a) omit paragraph (a) (section 17(2));

(b) in paragraph (f), omit “and 88(1) and (4)”.

(3) In the Schedule to the Scotland Act 1998 (Transfer of Functions to the Scottish
30Ministers etc) Order 2000 (S.I. 2000/1563S.I. 2000/1563) omit the entry for the Road Traffic
Regulation Act 1984 (section 88(1)(a) and (4)).

(4) The transfer by virtue of section 21 of a function exercisable by the Secretary of
State to the Scottish Ministers (a “transferred function”) does not affect the
validity of anything done (or which has effect as if done) by or in relation to the
35Secretary of State before the commencement of that section.

(5) Anything (including legal proceedings) which, at that commencement, is in the
process of being done by or in relation to the Secretary of State may, so far as it
relates to a transferred function, be continued by or in relation to the Scottish
Ministers.

(6) 40Anything done (or which has effect as if done) by or in relation to the Secretary
of State for the purposes of or in connection with a transferred function has
effect, if it is in force at that commencement, as if done by or in relation to the
Scottish Ministers, so far as that is required for continuing its effect.

(7) But an instrument containing regulations or an order made by the Secretary of
State is not to be treated as if made by the Scottish Ministers for the purposes
of section 64(2C)(a) or (b) of the Road Traffic Regulation Act 1984.

Part 3 5Finance

Introductory

23 Taxation: introductory

(1) The 1998 Act is amended as follows.

(2) Before Part 5 insert—

10“ Part 4A Taxation

CHAPTER 1 Introductory

80A Overview of Part 4A

(1) In this Part—

(a) 15Chapter 2 confers on the Scottish Parliament power to set a rate
of income tax to be paid by Scottish taxpayers, and

(b) Chapters 3 and 4 specify the taxes about which the Scottish
Parliament may make provision in the exercise of the power
conferred by section 28(1).

(2) 20The power to make provision about a devolved tax is subject to the
restrictions imposed by—

(a) subsection (3), and

(b) the other provisions of this Part.

(3) A devolved tax may not be imposed where to do so would be
25incompatible with any international obligations.

(4) In this Act “devolved tax” means a tax specified in this Part as a
devolved tax.

80B Power to add new devolved taxes

(1) Her Majesty may by Order in Council amend this Part so as to—

(a) 30specify, as an additional devolved tax, a tax of any description,
or

(b) make any other modifications of the provisions relating to
devolved taxes which She considers necessary or expedient.

(2) An Order in Council under this section may also make such
35modifications of—

(a) any enactment or prerogative instrument (including any
enactment comprised in or made under this Act), or

(b) any other instrument or document,

as Her Majesty considers necessary or expedient in connection with
other provision made by the Order.”

(3) In section 93 (agency arrangements)—

(a) 5after subsection (2) insert—

“(2A) The collection and management of a devolved tax is a specified
function of the Scottish Ministers.”;

(b) in subsection (3), in the definition of “specified”, after “specified” insert
“(subject to subsection (2A))”.

(4) 10In section 127 (index of defined expressions), at the appropriate place insert—

(5) In Part 2 of Schedule 5 to that Act, in Section A1 (specific reservations: fiscal,
economic and monetary policy), for “Exception” substitute “Exceptions” and
after that heading insert—

15“Devolved taxes, including their collection and management.”

(6) In Schedule 7 (procedure for subordinate legislation), in paragraph 1, at the
appropriate place insert—

24 Amendments relating to the Commissioners for Revenue and Customs

(1) 20The Commissioners for Revenue and Customs Act 2005 is amended as follows.

(2) Section 18 (confidentiality) is amended as follows.

(3) In subsection (2)—

(a) omit “or” at the end of paragraph (g), and

(b) after paragraph (h) insert “, or

(i) 25which is made to the Scottish Ministers in connection
with the collection and management of a devolved tax
within the meaning of the Scotland Act 1998.”

(4) After subsection (2) insert—

“(2A) Information disclosed in reliance on subsection (2)(i) may not be further
30disclosed without the consent of the Commissioners (which may be
general or specific).”

(5) In section 19 (wrongful disclosure) in subsections (1) and (8) after “18(1)” insert
“or (2A)”.

(6) In section 51 (interpretation) after subsection (2) insert—

“(2A) 35But a reference to the functions of the Commissioners or of officers of
Revenue and Customs does not include a function which—

(a) is conferred on them by or by virtue of an Act of the Scottish
Parliament or an instrument made under such an Act, and

(b) relates to a devolved tax within the meaning of the Scotland Act
1998.”

(7) In section 1(1) of the Customs and Excise Management Act 1979
(interpretation), at the end of the definition of “assigned matter” insert “, except
5that it does not include any matter relating to a devolved tax within the
meaning of the Scotland Act 1998;”.

Scottish rate of income tax

25 Scottish rate of income tax

(1) The 1998 Act is amended as follows.

(2) 10Part 4 (power to vary income tax rate) is omitted.

(3) In Part 4A (as inserted by section 23), after Chapter 1 insert—

“CHAPTER 2 Income Tax

80C Power to set Scottish rate for Scottish taxpayers

(1) The Scottish Parliament may by resolution (a “Scottish rate resolution”)
15set the Scottish rate for the purpose of calculating the rates of income
tax to be paid by Scottish taxpayers.

(2) Section 6(2B) of the Income Tax Act 2007 provides for the calculation of
those rates.

(3) A Scottish rate resolution applies—

(a) 20for only one tax year, and

(b) for the whole of that year.

(4) A Scottish rate resolution may specify only one rate.

(5) The Scottish rate must be a whole number or half a whole number.

(6) A Scottish rate resolution—

(a) 25must specify the tax year for which it applies,

(b) must be made before the start of that tax year, and

(c) must not be made more than 12 months before the start of that
year.

(7) If a Scottish rate resolution is cancelled before the start of the tax year
30for which it is to apply—

(a) the Income Tax Acts have effect for that year as if the resolution
had never been passed, and

(b) the resolution may be replaced by another Scottish rate
resolution.

(8) 35Standing orders must provide that only a member of the Scottish
Government may move a motion for a Scottish rate resolution.

80D Scottish taxpayers

(1) In any tax year, a Scottish taxpayer is an individual (T)—

(a) who is resident in the UK for income tax purposes, and

(b) who, for that year, meets condition A, B or C.

(2) T meets condition A if T has a close connection with Scotland (see
section 80E).

(3) 5T meets condition B if—

(a) T does not have a close connection with any part of the UK other
than Scotland (see section 80E), and

(b) T spends more days of that year in Scotland than in any other
part of the UK (see section 80F).

(4) 10T meets condition C if, for the whole or any part of the year, T is—

(a) a member of Parliament for a constituency in Scotland,

(b) a member of the European Parliament for Scotland, or

(c) a member of the Scottish Parliament.

(5) In this Chapter “the UK” means the United Kingdom.

80E 15Close connection with Scotland or another part of the UK

(1) To find whether, for any year, T has a close connection with any part of
the UK see—

(a) subsection (2) (where T has only one place of residence in the
UK), or

(b) 20subsection (3) (where T has 2 or more places of residence in the
UK).

(2) T has a close connection with a part of the UK if in that year—

(a) T has only one place of residence in the UK,

(b) that place of residence is in that part of the UK, and

(c) 25for at least part of the year, T lives at that place.

(3) T has a close connection with a part of the UK if in that year—

(a) T has 2 or more places of residence in the UK,

(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) 30the 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
year 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
35part of the UK.

(4) In this section “place” includes a place on board a vessel or other means
of 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
40UK if (and only if)—

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

equals or exceeds

(b) the number of days in the year on which T is in any other part
45of 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) on 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
5engage in activities which are to a substantial extent unrelated
to T’s passage through the UK.

80G Supplemental 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
10effect 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
connection with—

(a) the power of the Parliament to set a rate under section 80C;

(b) 15the making of a Scottish rate resolution;

(c) an order under subsection (1).

(3) An 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) 20the 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
specified in the order.

(4) An order under this section may, to the extent that the Treasury
25consider 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
30virtue of this Chapter at any time after the passing of the Scotland Act
2012 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
35(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
Treasury by order under this subsection (as the first year for which those
provisions are to have effect).

(6) 40The tax year appointed under subsection (4) must precede the tax year
appointed under subsection (5).

(7) Schedule 2 (which contains other amendments relating to the power to set a
Scottish rate of income tax) has effect.