Scotland Bill (HL Bill 73)

Scotland BillPage 20

(5) The payment of those amounts under section 64(2A) is to be made in
accordance with any agreement between the Treasury and the Scottish
Ministers as to the time of the payment or otherwise.”

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

(5) 5In subsection (2) of section 18 (confidentiality: exceptions) omit “or” after
paragraph (i), and after paragraph (j) insert , or

(k) which is made in connection with (or with anything done with
a view to) the making or implementation of an agreement
referred to in section 64A(1) or (2) of the Scotland Act 1998
10(assignment of VAT).”

(6) After that subsection insert—

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

(7) 15In section 19 (wrongful disclosure) in subsections (1) and (8) after “18(1)” insert
“or (2A)”.

Devolved taxes

17 Tax on carriage of passengers by air

(1) In Part 4A of the Scotland Act 1998, after Chapter 4 insert—

“CHAPTER 5 20Tax on carriage of passengers by air
80L Tax on carriage of passengers by air

A tax charged on the carriage of passengers by air from airports in
Scotland is a devolved tax.”

(2) Tax may not be charged in accordance with that provision on the carriage of
25passengers boarding aircraft before the date appointed under subsection (7).

(3) Chapter 4 of Part 1 of The Finance Act 1994 (air passenger duty) is amended as
follows.

(4) In section 28(4) (a chargeable passenger is a passenger whose journey begins at
an airport in the United Kingdom), for “the United Kingdom” substitute
30“England, Wales or Northern Ireland”.

(5) In section 31(4B) (exception for passengers departing from airports in
designated region of the United Kingdom) for “the United Kingdom”
substitute “England, Wales or Northern Ireland”.

(6) The Air Passenger Duty (Designated Region of the United Kingdom) Order
352001 (S.I. 2001/808S.I. 2001/808) is revoked.

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(7) Subsections (3) to (6) have effect in relation to flights beginning on or after such
date as the Treasury appoint by regulations made by statutory instrument.

18 Tax on commercial exploitation of aggregate

(1) In Part 4A of the Scotland Act 1998, after the Chapter 5 inserted by section 17
5insert—

“CHAPTER 6 Tax on commercial exploitation of aggregate
80M Tax on commercial exploitation of aggregate

(1) A tax which is charged on aggregate when it is subjected to commercial
exploitation in Scotland is a devolved tax.

(2) 10The tax must not be chargeable when aggregate is subjected to
commercial exploitation for fuel.

(3) Aggregate is subjected to commercial exploitation for fuel—

(a) when the aggregate is used as fuel;

(b) when the aggregate is subjected to commercial exploitation for
15the purpose of extracting or producing anything capable of
being used as fuel;

(c) when the aggregate becomes subject to an agreement to use it as
mentioned in paragraph (a) or to subject it to commercial
exploitation as mentioned in paragraph (b).”

(2) 20Tax may not be charged in accordance with that provision on commercial
exploitation of aggregate which takes place before the date appointed under
subsection (4).

(3) In section 16(2) of the Finance Act 2001 (aggregates levy) for “the United
Kingdom” substitute “England, Wales or Northern Ireland”.

(4) 25Subsection (3) and Schedule 1 (further amendments relating to the
disapplication of UK aggregates levy to Scotland) have effect in relation to
commercial exploitation of aggregate which takes place on or after such date
as the Treasury appoint in regulations made by statutory instrument.

19 Devolved taxes: further provision

(1) 30In section 80A of the Scotland Act 1998 (overview of Part 4A), in subsection
(1)(b), for “Chapters 3 and 4” substitute “The remaining Chapters”.

(2) The Treasury may by regulations make further provision relating to—

(a) the disapplication of air passenger duty in relation to flights beginning
at airports in Scotland;

(b) 35the disapplication of aggregates levy in relation to commercial
exploitation of aggregate in Scotland.

(3) The power conferred by subsection (2) includes power—

(a) to make transitional or saving provision in connection with the coming
into force of section 17 or 18 or Schedule 1;

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(b) to amend, repeal, revoke or otherwise modify an enactment, whenever
passed or made (including this Act).

(4) Section 17(7) and section 18(4) are subject to any provision made by virtue of
subsection (3).

(5) 5Regulations under this section must be made by statutory instrument.

(6) 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.

(7) 10Any 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.

(8) In this section “enactment” includes an enactment contained in subordinate
15legislation (within the meaning of the Interpretation Act 1978).

Part 3 Welfare benefits and employment support

Welfare benefits

20 Disability, industrial injuries and carer’s benefits

(1) 20In Part 2 of Schedule 5 to the Scotland Act 1998, Section F1 (social security
schemes) is amended as follows.

(2) In the Exceptions, before the paragraph beginning “The subject-matter of
Part II of the Social Work (Scotland) Act 1968” insert—

Exception 1

25Any of the following benefits—

(a) disability benefits, other than severe disablement benefit or
industrial injuries benefits,

(b) severe disablement benefit, so far as payable in respect of a
relevant person, and

(c) 30industrial injuries benefits, so far as relating to relevant
employment or to participation in training for relevant
employment;

but this exception does not except a benefit which is, or which is an
element of, an excluded benefit.

35Exception 2

Carer’s benefits, other than a benefit which is, or which is an element
of, an excluded benefit.”

(3) In the Exceptions, at the beginning of the paragraph beginning “The subject-
matter of Part II of the Social Work (Scotland) Act 1968” insert—

40Exception 3”.

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(4) In the Interpretation provision, after “local taxes.” insert—

““Disability benefit” means a benefit which is normally payable in
respect of—

(a) a significant adverse effect that impairment to a person’s
5physical or mental condition has on his or her ability to carry
out day-to-day activities (for example, looking after yourself,
moving around or communicating), or

(b) a significant need (for example, for attention or for
supervision to avoid substantial danger to anyone) arising
10from impairment to a person’s physical or mental condition;

and for this purpose the adverse effect or need must not be short-
term.

“Severe disablement benefit” means a benefit which is normally
payable in respect of—

(a) 15a person’s being incapable of work for a period of at least
28 weeks beginning not later than the person’s 20th birthday,
or

(b) a person’s being incapable of work and disabled for a period
of at least 28 weeks;

20and “relevant person”, in relation to severe disablement benefit,
means a person who is entitled to severe disablement allowance
under section 68 of the Social Security Contributions and Benefits
Act 1992 on the date on which section 20 of the Scotland Act 2015
comes into force as respects severe disablement benefit.

25“Industrial injuries benefit” means a benefit which is normally
payable in respect of—

(a) a person’s having suffered personal injury caused by
accident arising out of and in the course of his or her
employment, or

(b) 30a person’s having developed a disease or personal injury due
to the nature of his or her employment;

and for this purpose “employment” includes participation in
training for employment.

“Relevant employment”, in relation to industrial injuries benefit,
35means employment which—

(a) is employed earner’s employment for the purposes of
section 94 of the Social Security Contributions and Benefits
Act 1992 as at 28 May 2015 (the date of introduction into
Parliament of the Bill for the Scotland Act 2015), or

(b) 40would be such employment but for—

(i) the contract purporting to govern the employment
being void, or

(ii) the person concerned not being lawfully employed,

as a result of a contravention of, or non-compliance with,
45provision in or made by virtue of an enactment passed to
protect employees.

“Carer’s benefit” means a benefit which is normally payable in
respect of the regular and substantial provision of care by a person to

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a disabled person; and for this purpose “disabled person” means a
person to whom a disability benefit is normally payable.

“Excluded benefit” means—

(a) a benefit, entitlement to which, or the amount of which, is
5normally determined to any extent by reference to a person’s
income or capital (for example, universal credit under Part 1
of the Welfare Reform Act 2012),

(b) a benefit which is payable out of the National Insurance Fund
(for example, employment and support allowance under
10section 1(2)(a) of the Welfare Reform Act 2007), or

(c) a benefit payable by way of lump sum in respect of a person’s
having, or having had—

(i) pneumoconiosis,

(ii) byssinosis,

(iii) 15diffuse mesothelioma,

(iv) bilateral diffuse pleural thickening, or

(v) primary carcinoma of the lung where there is
accompanying evidence of one or both of asbestosis
and bilateral diffuse pleural thickening.

20“Employment” includes any trade, business, profession, office or
vocation (and “employed” is to be read accordingly).”

21 Benefits for maternity, funeral and heating expenses

(1) In Part 2 of Schedule 5 to the Scotland Act 1998, Section F1 is amended as
follows.

(2) 25In the Exceptions, after exception 3 (see section 20(3) above) insert—

Exception 4

Providing financial or other assistance for the purposes of meeting or
reducing—

(a) maternity expenses,

(b) 30funeral expenses, or

(c) expenses for heating in cold weather.”

(3) In the Exceptions, for the words from “But the following are not excepted” to
“Act 2000 (discretionary housing payments).” substitute—

Exclusions from exceptions 1 to 10

35Nothing in exceptions 1 to 10 is to be read as excepting—

(a) the National Insurance Fund,

(b) the Social Fund, or

(c) the provision by a Minister of the Crown of assistance by way
of loan for the purpose of meeting, or helping to meet, an
40intermittent expense.”

(4) In the Interpretation provision, omit the words from “Paragraph 5(1) of Part 3
of this Schedule” to “it is to be treated as if it were.”

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22 Discretionary payments: top-up of reserved benefits

In Section F1 of Part 2 of Schedule 5 to the Scotland Act 1998, in the Exceptions,
after exception 4 (see section 21 above) insert—

Exception 5

5Providing financial assistance to an individual who—

(a) is entitled to a reserved benefit, and

(b) appears to require financial assistance, in addition to any
amount the individual receives by way of reserved benefit,
for the purpose, or one of the purposes, for which the benefit
10is being provided.

This exception does not except discretionary financial assistance in a
reserved benefit.

This exception also does not except providing financial assistance to
meet or help to meet housing costs (as to which, see exception 6).

15This exception also does not except providing financial assistance
where the requirement for it arises from reduction, non-payability or
suspension of a reserved benefit as a result of an individual’s
conduct (for example, non-compliance with work-related
requirements relating to the benefit) unless—

(a) 20the requirement for it also arises from some exceptional event
or exceptional circumstances, and

(b) the requirement for it is immediate.

For the purposes of this exception “reserved benefit” means a benefit
which is to any extent a reserved matter.”

23 25Discretionary housing payments

In Section F1 of Part 2 of Schedule 5 to the Scotland Act 1998, in the Exceptions,
after exception 5 (see section 22 above) insert—

Exception 6

Providing financial assistance to an individual who—

(a) 30is entitled to—

(i) housing benefit, or

(ii) any other reserved benefit payable in respect of a
liability to make rent payments, and

(b) appears to require financial assistance, in addition to any
35amount the individual receives by way of housing benefit or
such other reserved benefit, to meet or help to meet housing
costs.

This exception does not except discretionary financial assistance in a
reserved benefit.

40This exception also does not except providing financial assistance
where the requirement for it arises from reduction, non-payability or
suspension of a reserved benefit as a result of an individual’s
conduct (for example, non-compliance with work-related
requirements relating to the benefit) unless—

(a) 45the requirement for it also arises from some exceptional event
or exceptional circumstances, and

(b) the requirement for it is immediate.

For the purposes of this exception—

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  • “rent payments”—

    (a)

    has the meaning given from time to time by
    paragraph 2 of Schedule 1 to the Universal Credit
    Regulations 2013 (S.I. 2013/376S.I. 2013/376) or any re-enactment
    5of that paragraph, or

    (b)

    if at any time universal credit ceases to be payable to
    anyone, has the meaning given by that paragraph or
    any re-enactment of that paragraph immediately
    before that time;

  • 10“reserved benefit” means a benefit which is to any extent a
    reserved matter.”

24 Discretionary payments and assistance

In Section F1 of Part 2 of Schedule 5 to the Scotland Act 1998, in the Exceptions,
for the words from “Providing occasional financial” to “unsettled way of life.”
15substitute—

Exception 7

Providing financial or other assistance to or in respect of individuals
who appear to require it for the purposes of meeting, or helping to
meet, a short-term need that requires to be met to avoid a risk to the
20well-being of an individual.

This exception does not except providing assistance where the
requirement for it arises from reduction, non-payability or
suspension of a benefit as a result of an individual’s conduct (for
example, non-compliance with work-related requirements relating
25to the benefit) unless—

(a) the requirement for it also arises from some exceptional event
or exceptional circumstances, and

(b) the need is immediate as well as short-term.

Exception 8

30Providing occasional financial or other assistance to or in respect of
individuals who have been or might otherwise be—

(a) in prison, hospital, a residential care establishment or other
institution, or

(b) homeless or otherwise living an unsettled way of life,

35and who appear to require the assistance to establish or maintain a
settled home.”

25 Welfare foods

(1) Part 2 of Schedule 5 to the Scotland Act 1998, Section F1 (social security
schemes) is amended as follows.

(2) 40In the Exceptions, after exception 8 (see section 24 above) insert—

Exception 9

The subject-matter of section 13 of the Social Security Act 1988
(benefits under schemes for improving nutrition: pregnant women,
mothers and children).”

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(3) In the Interpretation provision, at the end insert—

“The reference to the subject-matter of section 13 of the Social
Security Act 1988 is to be construed as a reference to it as at the day
on which section 25 of the Scotland Act 2015 comes into force (and,
5accordingly, paragraph 5(1) of Part 3 of this Schedule does not apply
to that reference).”

(4) Omit Section J5 (welfare foods).

(5) In the Social Security Act 1988, in section 13(2) (benefits under schemes for
improving nutrition: consultation) omit “the Scottish Ministers and”.

26 10Power to create other new benefits

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

(2) In Section F1 of Part 2 of Schedule 5, in the Exceptions, after exception 9 (see
section 25 above) insert—

“Exception 10

15Schemes which provide assistance for social security purposes to or
in respect of individuals by way of benefits and which—

(a) are supported from sums paid out of the Scottish
Consolidated Fund,

(b) do not fall within exceptions 1 to 9, and

(c) 20are not connected with reserved matters (other than matters
reserved only by virtue of this Section).

This exception does not except providing assistance by way of
pensions to or in respect of individuals who qualify by reason of old
age.

25This exception does not except providing assistance where the
requirement for it arises from reduction, non-payability or
suspension of a reserved benefit as a result of an individual’s
conduct (for example, non-compliance with work-related
requirements relating to the benefit) unless—

(a) 30the requirement for it also arises from some exceptional event
or exceptional circumstances, and

(b) the requirement for it is immediate.

For the purposes of this exception “reserved benefit” means a benefit
which is to any extent a reserved matter.

35In this exception the reference to schemes supported from sums paid
out of the Scottish Consolidated Fund does not include schemes—

(a) in respect of which sums are at some time paid out of the
Scottish Consolidated Fund, but

(b) which are directly supported from payments out of the
40Consolidated Fund, the National Insurance Fund or the
Social Fund, or out of money provided by Parliament.”

(3) Schedule 4 (enactments etc protected from modification) is amended as
follows.

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(4) In paragraph 2, at the end insert—

(5) Sub-paragraph (3) does not affect sub-paragraph (1) as it applies to
an Act of the Scottish Parliament so far as any matter to which a
provision of the Act relates falls within exception 10 of Section F1 of
5Part 2 of Schedule 5.”

(5) In paragraph 3, at the end insert—

(3) Sub-paragraph (1) does not affect the application of paragraph 2 to
modifications which are incidental to, or consequential on, any
provision, if it is only by virtue of exception 10 of Section F1 of Part
102 of Schedule 5 that the provision does not relate to reserved
matters.”

27 Universal credit: costs of claimants who rent accommodation

(1) A function of making regulations to which this section applies, so far as it is
exercisable by the Secretary of State in or as regards Scotland, is exercisable by
15the Scottish Ministers concurrently with the Secretary of State.

(2) This section applies to—

(a) regulations under section 11(4) of the Welfare Reform Act 2012
(determination and calculation of housing cost element), so far as
relating to any liability of a claimant in respect of accommodation
20which the claimant rents, and

(b) regulations under section 5(1)(p) of the Social Security Administration
Act 1992 (payments to another person on behalf of the beneficiary), so
far as relating to the payment of an amount of universal credit in
respect of any such liability.

(3) 25For the purposes of this section—

(a) a claimant “rents” accommodation if he or she is liable to make rent
payments (with or without other payments) in respect of it, and

(b) “rent payments” has the meaning given from time to time by paragraph
2 of Schedule 1 to the Universal Credit Regulations 2013 (S.I. 2013/376S.I. 2013/376).

(4) 30The Scottish Ministers may not exercise the function of making regulations to
which this section applies unless they have consulted the Secretary of State
about the practicability of implementing the regulations.

(5) If—

(a) the Scottish Ministers make regulations to which this section applies,
35and

(b) the Secretary of State considers that it is not practicable to implement a
change made by the regulations by the time that change is to start to
have effect,

the Secretary of State may by regulations made by statutory instrument amend
40the regulations so that the change is to start to have effect from a time later than
the time originally set.

(6) The altered time must be no later than the Secretary of State considers
necessary, having regard to the practicability of implementing the change.

(7) The Secretary of State may not exercise the function of making regulations to
45which this section applies in or as regards Scotland unless he or she has
consulted the Scottish Ministers.

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(8) Where regulations are made by the Scottish Ministers by virtue of subsection
(1)

(a) section 43 of the Welfare Reform Act 2012 (in the case of regulations
referred to in subsection (2)(a)) and sections 189(3) and 190 of the Social
5Security Administration Act 1992 (in the case of regulations referred to
in subsection (2)(b)) do not apply, and

(b) the regulations are subject to the negative procedure (see section 28 of
the Interpretation and Legislative Reform (Scotland) Act 2010).

28 Universal credit: persons to whom, and time when, paid

(1) 10A function of making regulations to which this section applies, so far as it is
exercisable by the Secretary of State in or as regards Scotland, is exercisable by
the Scottish Ministers concurrently with the Secretary of State.

(2) This section applies to regulations under section 5(1)(i) of the Social Security
Administration Act 1992, so far as relating to the person to whom, or the time
15when, universal credit is to be paid.

(3) The Scottish Ministers may not exercise the function of making regulations to
which this section applies unless they have consulted the Secretary of State
about the practicability of implementing the regulations.

(4) If—

(a) 20the Scottish Ministers make regulations to which this section applies,
and

(b) the Secretary of State considers that it is not practicable to implement a
change made by the regulations by the time that change is to start to
have effect,

25the Secretary of State may by regulations made by statutory instrument amend
the regulations so that the change is to start to have effect from a time later than
the time originally set.

(5) The altered time must be no later than the Secretary of State considers
necessary, having regard to the practicability of implementing the change.

(6) 30The Secretary of State may not exercise the function of making regulations to
which this section applies in or as regards Scotland unless he or she has
consulted the Scottish Ministers.

(7) Where regulations are made by the Scottish Ministers by virtue of subsection
(1)

(a) 35sections 189(3) and 190 of the Social Security Administration Act 1992
do not apply, and

(b) the regulations are subject to the negative procedure (see section 28 of
the Interpretation and Legislative Reform (Scotland) Act 2010).

Employment support

29 40Employment support

(1) In Part 2 of Schedule 5 to the Scotland Act 1998, Section H3 (job search and
support) is amended as follows.

(2) For the heading “Exception” substitute “Exceptions”.