Scotland Bill (HL Bill 73)

Scotland BillPage 10

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

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

(10) After subsection (4) insert—

(4A) 5Subsection (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
Scottish Ministers must either—

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

(b) 10lay 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) After subsection (4A) insert—

(4B) Subject to subsections (4C) and (4D), any order or regulations made
15under this Act by the Scottish Ministers shall be subject to the negative
procedure (see section 28 of the Interpretation and Legislative Reform
(Scotland) Act 2010).

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

(4D) Subsection (4B) does not apply to an order falling within subsection (4),
20and any such order made by the Scottish Ministers shall be subject to
the affirmative procedure (see section 29 of the Interpretation and
Legislative Reform (Scotland) Act 2010).”

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

(14) 25In 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 30Review 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 for “the Boundary Commission for
Scotland” in each place substitute “the Local Government Boundary
35Commission for Scotland”.

(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
40House” in each place, and

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

substitute “the Parliament”.

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(5) In paragraph 3(4)—

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

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

(6) 5In 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 Functions exercisable within devolved competence: elections

(1) The Scotland Act 1998 (“the 1998 Act”) has effect, in relation to any function so
10far as exercisable within devolved competence by virtue of a provision of
section 3, as if references to a “pre-commencement enactment” were to—

(a) an Act passed before or in the same session as the relevant date,

(b) any other enactment made before the relevant date,

(c) subordinate legislation under section 106 of the 1998 Act, to the extent
15that the legislation states that it is to be treated as a pre-commencement
enactment,

but did not include the 1998 Act or this Act (or any amendment made by either
of those Acts) or (subject to paragraph (c)) an enactment comprised in
subordinate legislation under either of those Acts.

(2) 20In this section—

(a) expressions used in the 1998 Act have the same meaning as in that Act;

(b) the relevant date is the date on which section 3 comes into force.

10 Minor and consequential amendments: elections etc

(1) This section makes minor and consequential amendments in relation to
25elections and related matters.

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

(3) Omit sections 92(4A), 104(3) and 112(6) and paragraph 11(4) of Schedule 4
(functions under section 15 to be regarded as exercisable within devolved
competence).

(4) 30In Schedule 4, omit paragraph 4(2A) and (2B) (voting age).

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

(6) In the Scotland Act 2012, omit sections 1, 2 and 13.

(7) In the Scottish Parliament (Elections etc.) Order 2010 (S.I. 2010/2999 (S. 9)S.I. 2010/2999 (S. 9)),
omit article 13.

(8) 35The Scotland Act 1998 (Modification of Schedules 4 and 5 and Transfer of
Functions to the Scottish Ministers) Order 2015 (S.I. 2015/692S.I. 2015/692) is revoked.

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Legislation by the Parliament

11 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) 5In 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
10whether or not in his view any provision of the Bill relates 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
15matters 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) 20the 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) 25After 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 any
provision of a Bill relates to a protected subject-matter, the Bill is not
passed unless the number of members voting in favour of it at the final
30stage is at least two-thirds of the total number of seats for members of
the Parliament.”

(7) Section 32 (submission of Bills for Royal Assent) is amended as follows.

(8) In subsection (2)(a) after “under section” insert “32A or”.

(9) After subsection (2) insert—

(2A) 35The Presiding Officer shall not submit a Bill for Royal Assent if the
Supreme Court has decided a reference made in relation to the Bill
under section 32A(2)(b), unless since the decision the Bill has been
approved in accordance with standing orders made by virtue of section
36(5).”

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(10) After 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
5a protected subject-matter to the Supreme Court for decision.

(2) Subject 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 any provision of
10the Bill relates to a protected subject-matter, and

(b) at 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 no provision of the Bill
relates to a protected subject-matter, unless the number of
15members voting in favour of the Bill at its passing is at least two-
thirds of the total number of seats for members of the
Parliament.

(3) He shall not make a reference in relation to a Bill if he has notified the
Presiding Officer that he does not intend to make a reference in relation
20to the Bill, unless since the notification the Bill has been approved or
rejected in accordance with standing orders made by virtue of section
36(5).”

(11) Section 33 (scrutiny of Bills by the Supreme Court) is amended as follows.

(12) In the heading after “Supreme Court” insert “(legislative competence)”.

(13) 25In subsection (2)(b) omit “subsequent”.

(14) In section 35(3) (power to intervene in certain cases)—

(a) in paragraph (b) omit “subsequent”, and

(b) in paragraph (c) after “section” insert “32A(2)(b) or”.

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

(16) 30In subsection (4) after paragraph (a) insert—

(aa) the Supreme Court decides a reference made in relation to the
Bill under section 32A(2)(b),”.

(17) After that subsection insert—

(4A) Standing orders shall provide for an opportunity for the
35reconsideration of a Bill after its rejection if (and only if), on a reference
made in relation to the Bill under section 32A(2)(a), the Supreme Court
decides that no provision that is subject to the reference relates to a
protected subject-matter.”

(18) In subsection (5) for “any Bill amended on reconsideration” substitute

(a) 40any Bill amended on reconsideration in accordance with
standing orders made by virtue of subsection (4)(a), (b) or (c),
and

(b) any Bill reconsidered in accordance with standing orders made
by virtue of subsection (4)(aa) or (4A),”.

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(19) In subsection (6)—

(a) after “28(2)” insert “, 31(2A), 31A, 32A(2)(b)”;

(b) for “which has been amended on reconsideration” substitute “to
which subsection (5)(a) or (b) applies”.

12 5Scope to modify the Scotland Act 1998

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

(2) In 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) 10the following sections in Part 1 (the Scottish Parliament)—

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

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

(iii) sections 3 to 11,

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

(v) 15sections 13 to 22,

(vi) sections 24 to 26,

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

(viii) section 28(4) and (5),

(ix) section 31(3),

(x) 20section 36(1)(a) and (b), and (2) and (3), and

(xi) sections 38 to 42,

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

(i)(i) section 44(1)(a) to (c) and (2),

(ii) 25section 45(3) to (7),

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

(iv) section 47(2) and (3)(b) to (e),

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

(vi) section 49(2), (3) and (4)(b) to (e), and

(vii) 30section 50,

(c) in Part 3 (financial provisions)—

(i) section 69(2) to (5), and

(ii) section 70(1) to (5) and (7) to (9),

(d) in Part 5 (miscellaneous and general), sections 81 to 83, 85, 91,
3592(1), (2) and (4) to (6), 93, 94 and 97,

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

(i) section 112(1) and (3) to (5), section 113 (except the
application of subsection (9)), section 115 and
Schedule 7 (so far as those sections and that Schedule
40apply to any power exercisable within devolved
competence to make subordinate legislation),

(ii) sections 118, 120 and 121, and

(iii) section 124 (so far as that section applies to any power
exercisable within devolved competence to make
45subordinate legislation),

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

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

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

(3) 5In 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

13 10Power of Scottish Parliament to set rates of income tax

(1) Section 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
15purposes of section 11A of the Income Tax Act 2007 (which provides for the
income of Scottish taxpayers 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
20purposes of that section, which rates apply in relation to a Scottish
taxpayer.

(2B) But 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
25resolution.”

(4) Omit subsection (4).

(5) In 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) 30In the title for “rate” substitute “rates”.

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

(8) In 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) 35In 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
additional” substitute “Scottish”, and

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

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(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
to make any provision that they consider necessary or expedient in
consequence of or in connection with—

(a) 5the 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) 10the absence of particular provision in a Scottish rate resolution
for a tax year, or

(c) the 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
15rate” to the end substitute “a Scottish rate”.

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

(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) 20The tax year appointed under subsection (15) must begin on or after the day
appointed under subsection (14).

14 Amendments 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) 25In subsection (3) omit paragraph (za).

(4) After that subsection insert—

(4) See 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) 30In section 10(4) for “the Scottish basic, higher and additional” substitute
“Scottish”.

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

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

(1A) 35Income tax is charged at Scottish rates on the non-savings income of a
Scottish taxpayer.”

(9) In 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) 40In section 13 (income charged at dividend rates)—

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

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(b) in 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) 5after 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
income that would, if the individual were not a Scottish
10taxpayer, 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) which part of a Scottish taxpayer’s income consists of savings
15income,”.

(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) in the definition of “Scottish basic rate”, for the words after “Scottish
20basic 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
    a Scottish rate resolution for that year,”, and

  • 25““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) omit the entries relating to the Scottish additional rate and the Scottish
30higher 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—

“Scottish rate section 989”

(d) 35at the appropriate place insert—

“Scottish rate
resolution
section 989”

(15) The amendments made by this section—

(a) come into force on the day appointed by the Treasury under section
4013(14), and

(b) have effect in relation to the tax year appointed by the Treasury under
section 13(15) and subsequent tax years.

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15 Consequential amendments: income tax

(1) In 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
5Income Tax Acts)”.

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

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

(4) At the end insert—

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

(b) 15the 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
rate”.

(6) In consequence of the amendments made by sections 13, 14 and this section
20omit the following provisions of Schedule 38 to the Finance Act 2014—

(a) paragraph 2(b);

(b) paragraph 3;

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

(d) paragraph 7;

(e) 25paragraph 15(2) and (3);

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

(7) The amendments made by this section—

(a) come into force on the day appointed by the Treasury under section
13(14), and

(b) 30have effect in relation to the tax year appointed by the Treasury under
section 13(15) and subsequent tax years.

(8) The Treasury may by regulations make—

(a) such consequential provision as they consider appropriate in
connection with any provision of section 13 or 14;

(b) 35such transitional or saving provision as they consider appropriate in
connection with the coming into force of any provision of section 13 or
14 or subsections (1) to (6).

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

(10) 40The following are subject to any provision made by virtue of subsection
(8)(b)

(a) subsection (7);

(b) section 13(15);

(c) section 14(15).

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(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
5resolution 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
Commons, is subject to annulment in pursuance of a resolution of the House of
Commons.

(14) 10In this section “enactment” includes an enactment contained in subordinate
legislation (within the meaning of the Interpretation Act 1978).

Value added tax

16 Assignment of VAT

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

(2) 15In 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 section.”

(3) After that section insert—

64A 20Assignment 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 attributable to Scotland for any period (“the agreed standard
rate amount”), the amount described in subsection (3) is payable under
25this 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 attributable to Scotland for that period (“the agreed reduced
rate amount”), the amount described in subsection (4) is payable under
30this 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—


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


40

where RR is the number of percentage points in the rate at which value
added tax is charged under section 29A(1) of the Value Added Tax Act
1994 for the period.