38 Review and power to amend sections 34 to 37

(1) The Secretary of State must arrange—

(a) for a review of the provision made by sections 34 to 37,

(b) for a report of the conclusions of the review to be made to the Secretary
5of State, and

(c) for a copy of the report to be given to the Scottish Ministers.

(2) The review must be carried out as soon as practicable after the end of 3 years
beginning with the day on which section 36(6) comes into force, or earlier if the
Secretary of State considers it appropriate.

(3) 10The review must—

(a) consider whether changes should be made to the provision made by
sections 34 to 37;

(b) consider whether further provision should be made in relation to any
matter dealt with by those sections;

(c) 15consider (in particular) whether an appeal to the Supreme Court on a
compatibility issue should lie only if the High Court of Justiciary
certifies that the issue raises a point of law of general public
importance.

(4) The Secretary of State may by order—

(a) 20amend the provision made by sections 34 to 37;

(b) make further provision in relation to any matter dealt with by those
sections.

(5) Provision made by order under subsection (4) may—

(a) amend, repeal or revoke an enactment passed or made before the order
25is made;

(b) confer power on the Secretary of State or the Scottish Ministers to make
an order or regulations;

(c) include consequential, transitional or saving provision.

(6) In this section “enactment” includes an enactment contained in subordinate
30legislation (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.

(7) In making the first order under subsection (4) the Secretary of State must take
into account the report made in accordance with subsection (1)(b).

(8) 35No order under subsection (4) may be made unless the Secretary of State has
consulted the Scottish Ministers.

(9) A statutory instrument containing an order under subsection (4) may not be
made unless a draft of the instrument has been laid before and approved by a
resolution of each House of Parliament.

39 40Maximum 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) A 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) 5In relation to Scotland, the specified penalties are—

(a) where the offence is triable on summary complaint only,
imprisonment 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
10complaint is tried on summary complaint, imprisonment for a
period exceeding 12 months and a fine exceeding the statutory
maximum,

(c) where the offence is tried on indictment, imprisonment for a
period exceeding two years.

(10) 15In relation to England and Wales and Northern Ireland, the specified
penalties are—

(a) where 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
20scale,

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

(b) where the offence is tried on indictment, imprisonment for a
period exceeding two years.”

(3) 25After 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) the amount of any fine so specified.”

(4) 30In 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
35into 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

40 Interpretation

40In this Act “the 1998 Act” means the Scotland Act 1998.

41 Orders

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

42 Power to make consequential, transitional and saving provision

(1) 5The Secretary of State may by order make provision consequential on any
provision of Part 1 or 2 or the preceding provisions of this Part.

(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 the
preceding provisions of this Part.

(3) 10The 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
15or 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) 20A 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)
25is 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
30resolution 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.

43 Financial provisions

(1) There shall be paid out of money provided by Parliament any increase
35attributable 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
Minister of the Crown by virtue of this Act which are not payable into the
National Loans Fund.

44 40Commencement

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

(a) sections 40 to 43;

(b) this section;

(c) section 45.

(2) The following provisions come into force at the end of the period of two
5months beginning with the day on which this Act is passed—

(a) section 11;

(b) Part 3, except section 25(7) (and Schedule 2) 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) 10sections 25(1) to (6) and 26;

(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
order appoint—

(a) 15section 25(7) and Schedule 2;

(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) The Secretary of State or the Treasury may appoint different days for different
20purposes.

45 Short title

This Act may be cited as the Scotland Act 2012.

SCHEDULES

Section 8

SCHEDULE 1 Amendments of Schedule 1 to the 1998 Act

1 Schedule 1 to the 1998 Act (constituencies, regions and regional members) is
5amended as follows.

Functions remaining with Boundary Commission for Scotland

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.

(2) For “The Electoral Commission or the Boundary Committee (as the case may
be)” in each place substitute “The Boundary Commission for Scotland”.

(3) In paragraph (8) of rule 2, omit “(or one made by the Boundary Committee
for the purposes of it)”.

7 5Omit paragraph 14(4).

Provision for constituencies and regions

8 In paragraph 1(2) (constituencies) for paragraph (c) substitute—

“(c) the constituencies provided for by an Order in Council
under paragraph 6.”

9 10For paragraph 2(2) (regions) substitute—

“(2) The regions are the regions provided for by an Order in Council
under paragraph 6.”

Reference to “local authority areas”

10 (1) In paragraph 12 (the constituency rules), rule 1 is amended as follows.

(2) 15In paragraph (1), for “local authority areas” substitute “the local government
areas having effect from time to time under section 1 of the Local
Government etc. (Scotland) Act 1994”.

(3) Omit paragraph (2).

Section 25

SCHEDULE 2 20Scottish rate of income tax: consequential amendments

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

(2) In section 110 (Scottish taxpayers for social security purposes)—

(a) in subsection (2), after “the basic rate” insert “, higher rate or
additional rate”;

(b) 25in that subsection, for the words in the brackets substitute “instead of
the rate calculated under section 6(2B) of the Income Tax Act 2007”;

(c) in subsection (3), for the words from “whether Scotland is” to the end
substitute “whether or not they have a close connection with
Scotland”;

(d) 30in subsection (4), for “Part IV” substitute “Chapter 2 of Part 4A”.

(3) In Schedule 4 (enactments protected from modification by the Parliament),
in paragraph 4(3), omit “, 77, 78”.

(4) In Schedule 7 (procedure for subordinate legislation)—

(a) for “Section 79” substitute “Section 80G”;

(b) 35in the Note relating to the entry for section 79—

(i) for “section 79” substitute “section 80G”, and

(ii) for “section 79(3)” substitute “section 80G(3)”.

2 In Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003
(consequential amendments), omit paragraph 237.

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

(2) 5In section 44 (payment into Consolidated Fund), omit subsection (3)(b).

(3) In Schedule 4 (consequential amendments), omit paragraphs 70 to 72.

Section 29

SCHEDULE 3 Scottish tax on land transactions: consequential amendments

Part 1 10Disapplication of stamp duty land tax to Scotland

Finance Act 1931

1 (1) Section 28 of the Finance Act 1931 (production to Commissioners of
instruments transferring land) is amended as follows.

(2) In subsection (3), omit “or” after paragraph (a) and after paragraph (b) insert
15“; or

“(c) to a Scottish transaction.”

(3) After subsection (3) insert—

“(3A) In subsection (3) “Scottish transaction” means the acquisition of—

(a) an estate, interest, right or power in or over land in Scotland,
20or

(b) the benefit of an obligation, restriction or condition affecting
the value of any such estate, interest, right or power.”

Finance Act 2003

2 The Finance Act 2003 is amended as follows.

3 25Omit section 44(9A)(b) (application of provisions relating to missives of let
etc).

4 In section 48 (chargeable interests)—

(a) in subsection (2)(c) omit “in England and Wales or Northern
Ireland”;

(b) 30omit subsection (4);

(c) in subsection (5) for “the United Kingdom” substitute “England and
Wales or Northern Ireland”.

5 In section 55(5) (additional provisions determining amount of tax
chargeable)—

(a) 35omit the reference to section 75 and the word “and” preceding it;

(b) for “provide” substitute “provides”.

6 In section 57AA (first-time buyers)—

(a) in subsection (2)(b) after “under the law of” insert “Scotland or”;

(b) in subsection (2)(c) omit “72, 72A”.

7 In section 60 (compulsory purchase facilitating development)—

(a) in subsection (2)(a), omit “or Scotland”;

(b) 5omit subsection (5)(b).

8 (1) Section 61 (compliance with planning obligations) is amended as follows.

(2) Omit subsection (2)(b) (definition of planning obligation in Scotland).

(3) In subsection (3) (public authorities)—

(a) under the heading “Government”, omit the entry “The Scottish
10Ministers”;

(b) omit the heading “Local Government: Scotland” and the entry under
that heading;

(c) omit the heading “Health: Scotland” and the entries under that
heading;

(d) 15under the heading “Other planning authorities” omit paragraph (b)
and the word “or” preceding it.

9 Omit section 71A(10) (disapplication of section to Scotland).

10 Omit sections 72 and 72A (alternative property finance in Scotland).

11 In section 73 (alternative property finance: land sold and re-sold)—

(a) 20in subsection (2)(b) omit “, 72(1) or 72A(1)”;

(b) omit subsection (5)(b)(ii).

12 (1) In section 73AB (arrangements to transfer control of financial institution)—

(a) in subsection (1) omit “, 72 or 72A”;

(b) in subsection (3), in the definition of “alternative finance
25arrangements” omit “, 72(1) or 72A(1)”.

(2) In the heading to that section, for “Sections 71A to 72A” substitute “Section
71A”.

13 (1) Section 73B (exempt interests) is amended as follows.

(2) In subsection (1) omit “, 72(1)(a) or 72A(1)(a)”.

(3) 30In subsection (2)—

(a) in paragraph (a) omit “, 72(1)(b) or 72A(1)(b)”;

(b) in paragraph (b) omit “, 72(1)(c) or 72A(1)(c)”.

(4) In subsection (4)(b) omit “, 72(4) or 72A(4)”.

14 In section 73CA (application of sections 71A to 73 to first-time buyers), in
35subsection (1) omit “, 72, 72A”.

15 Omit section 75 (crofting community right to buy).

16 In section 75C (anti-avoidance: supplemental), in subsection (4) for “, 74 and
75” substitute “and 74”.

17 In section 77 (notifiable transactions), in subsection (2)(a) omit “and 72A(7)”.

18 40In section 79 (registration of land transactions etc)—

(a) omit subsection (1)(b) (registration in Scotland);

(b) in subsection (2)(c) omit “or 19(3)”;

(c) in subsection (6) omit “(in Scotland, the Keeper of the Registers of
Scotland)”.

19 In section 108 (linked transactions) after subsection (1) insert—

“(1A) 5A transaction is not a linked transaction if the land to which it relates
is in Scotland.”

20 Omit section 117(3) (meaning of “major interest” in land in Scotland).

21 In section 119(2) (provisions as to effective date of transaction), omit the
reference to paragraph 19(3) of Schedule 17A.

22 10In section 121 (minor definitions) omit—

(a) the definition of “assignment”;

(b) the definition of “completion”;

(c) paragraph (b) of the definition of “jointly entitled”;

(d) the definition of “standard security”;

(e) 15the definition of “surrender”.

23 In section 122 (index of defined expressions) omit the entries relating to—

(a) assignment (in Scotland);

(b) completion (in Scotland);

(c) standard security;

(d) 20surrender (in Scotland).

24 (1) Schedule 4 (chargeable consideration) is amended as follows.

(2) In paragraph 8(1C), omit “in England and Wales and Northern Ireland”.

(3) Omit paragraph 10(2A)(c) (application of provisions relating to missives of
let etc).

(4) 25Omit paragraph 17(5) (arrangements involving public or educational
bodies).

25 (1) Schedule 10 (returns, etc) is amended as follows.

(2) In paragraph 7(1A) (correction of return by certain persons) omit paragraph
(b).

(3) 30In paragraph 45(2) (definition of “relevant tribunal”) omit paragraph (b).

26 (1) Schedule 15 (partnerships) is amended as follows.

(2) In paragraph 12(2) omit “(or, in Scotland, as joint owners)” and “(or, in
Scotland, as owners in common)”.

(3) In paragraph 20(2) omit “(or, in Scotland, as joint owners)” and “(or, in
35Scotland, as owners in common)”.

27 (1) Schedule 17A (further provision relating to leases) is amended as follows.

(2) In paragraph 1 (meaning of “lease”) for “In the application of this Part to
England and Wales or Northern Ireland” substitute “In this Part”.

(3) In paragraph 4 (leases for indefinite term), in sub-paragraph (5)(b) omit “in
40England and Wales or Northern Ireland”.

(4) In paragraph 7 (variable or uncertain rent), omit sub-paragraph (4A)(c) and
(d).

(5) In paragraph 10 (tenants’ obligations etc that do not count as chargeable
consideration), in sub-paragraph (1)(a) omit “(in Scotland, the leased
5premises)”.

(6) In paragraph 12A(1) (agreement for lease) omit “in England and Wales or
Northern Ireland”.

(7) In paragraph 12B(1) (assignment of agreement for lease) omit “in England
and Wales or Northern Ireland”.

(8) 10In paragraph 13 (increase of rent treated as grant of new lease: variation of
lease in first five years), in sub-paragraph (2)(b) for “any of paragraphs (a) to
(d)” substitute “paragraph (a) or (b)”.

(9) In paragraph 14 (increase of rent treated as grant of new lease: abnormal
increase after fifth year), in sub-paragraph (7)(b) omit “or 19(3)”.

(10) 15Omit paragraph 19 (provisions relating to leases in Scotland).

Finance Act 2004

28 In section 298 of the Finance Act 2004 (stamp duty land tax: notification etc),
omit subsection (3).

Finance (No. 2) Act 2005

29 20In section 47 of the Finance (No. 2) Act 2005 (e-conveyancing) omit—

(a) subsection (1);

(b) subsection (6)(b).

Finance Act 2006

30 In Schedule 25 to the Finance Act 2006 (amendments of Schedule 17A to
25Finance Act 2003), omit paragraph 5.

Finance Act 2009

31 (1) Schedule 61 to the Finance Act 2009 (alternative finance investment bonds)
is amended as follows.

(2) Paragraph 1 (interpretation) is amended as follows.

(3) 30In sub-paragraph (1)—

(a) before the definition of “HMRC” insert—

• ““effective date”, for a transaction relating to land in Scotland, is
  the date which would be the effective date (under section 119 of
  FA 2003) if Part 4 of FA 2003 applied to land in Scotland;”;

(b) 35omit the definition of “qualifying interest”.

(4) After sub-paragraph (1) insert—

“(1A) In this Schedule “qualifying interest”—

(a) in relation to land in England and Wales or Northern
Ireland, means a major interest in land (within the