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Scotland Bill


Scotland Bill
Part 3 — Finance

22

 

Scottish tax on land transactions

28      

Scottish tax on transactions involving interests in land

(1)   

In Part 4A of the 1998 Act (as inserted by section 24), after Chapter 2 (inserted

by section 26) insert—

“Chapter 3

5

Tax on transactions involving interests in land

80I     

Tax on transactions involving interests in land

(1)   

A tax charged on any of the following transactions is a devolved tax

(a)   

the acquisition of an estate, interest, right or power in or over land in

Scotland;

10

(b)   

the acquisition of the benefit of an obligation, restriction or condition

affecting the value of any such estate, interest, right or power.

(2)   

The tax may be chargeable

(a)   

whether or not there is any instrument effecting the transaction,

(b)   

if there is such an instrument, regardless of where it is executed, and

15

(c)   

regardless of where any party to the transaction is or is resident.

80J     

Certain transactions not taxable

(1)   

Tax may not be imposed under section 80I on so much of a transaction

as relates to land below mean low water mark.

(2)   

The following persons are not to be liable to pay a tax imposed under

20

section 80I—

   

Government

   

A Minister of the Crown

   

The Scottish Ministers

   

A Northern Ireland department

25

   

The Welsh Ministers, the First Minister for Wales and

the Counsel General to the Welsh Assembly

Government

   

Parliament etc

   

The Corporate Officer of the House of Lords

30

   

The Corporate Officer of the House of Commons

   

The Scottish Parliamentary Corporate Body

   

The Northern Ireland Assembly Commission

   

The National Assembly for Wales Commission

   

The National Assembly for Wales.”

35

(2)   

Tax may not be charged in accordance with the provisions inserted by this

section on a land transaction within the meaning of Part 4 of the Finance Act

2003 unless section 29 (disapplication of UK stamp duty land tax) has effect in

relation to that transaction.

29      

Disapplication of UK stamp duty land tax

40

(1)   

Part 4 of the Finance Act 2003 (stamp duty land tax) is amended as follows.

 
 

Scotland Bill
Part 3 — Finance

23

 

(2)   

In section 48 (chargeable interests), in subsection (1)(a) for “the United

Kingdom” substitute “England and Wales or Northern Ireland”.

(3)   

In Schedule 4

(a)   

Part 1 contains further amendments relating to the disapplication of

stamp duty land tax to Scotland, and

5

(b)   

Part 2 makes provision, in consequence of the disapplication of

paragraph 1(1)(b) of Schedule 10 to the Finance Act 2003 (prescribed

information in land transaction returns) to transactions relating to land

in Scotland, about the supply of information to Her Majesty’s Revenue

and Customs.

10

(4)   

This section has effect in relation to land transactions with an effective date on

or after such date as is appointed by the Treasury under this subsection.

(5)   

But this section does not have effect in relation to any transaction—

(a)   

effected in pursuance of a contract entered into and substantially

performed on or before the date on which this Act receives Royal

15

Assent, or

(b)   

effected in pursuance of a contract entered into on or before that date

and not excluded by subsection (6).

(6)   

A transaction effected in pursuance of a contract entered into on or before the

date on which this Act receives Royal Assent is excluded if—

20

(a)   

there is any variation of the contract, or assignation of rights under the

contract, after that date,

(b)   

the transaction is effected in consequence of the exercise after that date

of any option, right of pre-emption or similar right, or

(c)   

after that date there is an assignation, subsale or other transaction

25

relating to the whole or part of the subject-matter of the contract as a

result of which a person other than the purchaser under the contract

becomes entitled to call for a conveyance.

Scottish tax on disposals to landfill

30      

Scottish tax on disposals to landfill

30

(1)   

In Part 4A of the 1998 Act (as inserted by section 24), after Chapter 3 (inserted

by section 28) insert—

“Chapter 4

Tax on disposals to landfill

80K     

Tax on disposals to landfill

35

(1)   

A tax charged on disposals to landfill made in Scotland is a devolved tax.

(2)   

A disposal is a disposal to landfill if

(a)   

it is a disposal of material as waste, and

(b)   

it is made by way of landfill.

(2)   

Tax may not be charged in accordance with the provision inserted by this

40

section on a disposal if the disposal is made before the date appointed under

section 31(4).

 
 

Scotland Bill
Part 3 — Finance

24

 

31      

Disapplication of UK landfill tax

(1)   

Part 3 of the Finance Act 1996 (landfill tax) is amended as follows.

(2)   

In section 40(1) (charge on taxable disposal), after “taxable disposal” insert

“made in England and Wales or Northern Ireland”.

(3)   

Schedule 5 contains further amendments relating to the disapplication of

5

landfill tax to Scotland.

(4)   

This section has effect in relation to disposals made on or after such date as is

appointed by the Treasury under this subsection.

Borrowing

32      

Borrowing by the Scottish Ministers

10

(1)   

The 1998 Act is amended as follows.

(2)   

Section 66 (borrowing by the Scottish Ministers etc) is amended as follows.

(3)   

For subsection (1) substitute—

“(1)   

The Scottish Ministers may borrow from the Secretary of State

(a)   

any sums required by them for the purpose of meeting a temporary

15

excess of sums paid out of the Scottish Consolidated Fund over sums

paid into that Fund,

(b)   

any sums required by them for the purpose of providing a working

balance in the Scottish Consolidated Fund, and

(c)   

any sums which in accordance with rules determined by the Treasury

20

are required by them to meet current expenditure because of a shortfall

in receipts from devolved taxes against forecast receipts.

(1A)   

The Scottish Ministers may, with the approval of the Treasury, borrow by way

of loan any sums required by them for the purpose of meeting capital

expenditure.

25

(1B)   

A sum is required for the purpose of meeting capital expenditure if the

expenditure would be capital expenditure for the purposes of accounts under

section 70.

(4)   

In subsection (3) after “section” insert “from the Secretary of State”.

(5)   

Section 67 (lending by the Secretary of State) is amended as follows.

30

(6)   

In subsection (2) for “that section” substitute “section 66(1)”.

(7)   

In subsection (3) omit “increased”.

(8)   

After subsection (3) insert—

“(3A)   

An amount substituted under subsection (3) may be more or less than the

amount for which it is substituted but may not be less than £500 million.”

35

(9)   

After section 67 insert—

“67A    

Lending for capital expenditure

(1)   

The aggregate at any time outstanding in respect of the principal of sums

borrowed under section 66(1A) shall not exceed £2.2 billion.

 
 

Scotland Bill
Part 4 — Miscellaneous and General

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(2)   

The Secretary of State may by order made with the consent of the Treasury

substitute for the amount (or substituted amount) specified in subsection (1)

such amount as may be specified in the order.

(3)   

An amount substituted under subsection (2) may be more or less than the

amount for which it is substituted but may not be less than £2.2 billion.

5

(4)   

A person lending money to a member of the Scottish Government is not

bound to enquire whether the member of the Scottish Government has

power to borrow the money and is not to be prejudiced by the absence

of any such power.

(5)   

The Scottish Ministers may not mortgage or charge any of their

10

property as security for money which they have borrowed under

section 66(1A).

   

This is subject to section 66(2).

(6)   

Security given in breach of subsection (5) is unenforceable.”

(10)   

In Schedule 7 (procedure for subordinate legislation), in paragraph 1, at the

15

appropriate place insert—

 

“Section 67A(2)

Type E”.

 

Part 4

Miscellaneous and General

Miscellaneous

20

33      

Maximum 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

25

punishable with any of the penalties specified for the offence in

subsection (9B) or (10).

(9B)   

In 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

30

exceeding the amount specified as level 5 on the standard scale,

(b)   

where an offence triable either on indictment or on summary

complaint is tried on summary complaint, imprisonment for a

period exceeding 12 months and a fine exceeding the statutory

maximum,

35

(c)   

where the offence is tried on indictment, imprisonment for a

period exceeding two years.

(10)   

In relation to England and Wales and Northern Ireland, the specified

penalties are—

 
 

Scotland Bill
Part 4 — Miscellaneous and General

26

 

(a)   

where the offence is tried summarily, imprisonment for a

period exceeding three months and a fine exceeding the amount

specified as level 5 on the standard scale,

(b)   

where the offence is tried on indictment, imprisonment for a

period exceeding two years.”

5

(3)   

After 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.”

10

(4)   

In Schedule 7 (procedure for subordinate legislation), in paragraph 1, at the

appropriate place insert—

 

“Section 113(12)

Type A”.

 

(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

15

into 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

34      

Interpretation

20

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

35      

Power to make consequential, transitional and saving provision

(1)   

The Secretary of State may by order make provision consequential on any

provision of Part 1 or 2 or section 33.

(2)   

The Secretary of State may by order make transitional or saving provision in

25

connection with the coming into force of any provision of Part 1 or 2 or section

33.

(3)   

The Treasury may by order make—

(a)   

provision consequential on section 29 or 31;

(b)   

transitional or saving provision in connection with the coming into

30

force of any provision of Part 3.

(4)   

Provision under this section may amend, repeal or revoke an enactment passed

or 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

35

enactment contained in, or in an instrument made under, an Act of the Scottish

Parliament.

(6)   

A 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

 
 

Scotland Bill
Part 4 — Miscellaneous and General

27

 

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)

is subject to annulment in pursuance of a resolution of either House of

Parliament.

5

(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

resolution of the House of Commons.

(9)   

Any other statutory instrument containing an order under subsection (3) is

10

subject to annulment in pursuance of a resolution of the House of Commons.

36      

Transitional provision for Scottish statutory instruments

(1)   

Where by virtue of an amendment made by this Act the 1998 Act provides for

an instrument to be subject to—

(a)   

the affirmative procedure specified in section 29 of the Interpretation

15

and Legislative Reform (Scotland) Act 2010 (asp 10), or

(b)   

the negative procedure specified in section 28 of that Act,

   

subsection (2) applies at any time before that section comes into force.

(2)   

The power to make the instrument is exercisable by Scottish statutory

instrument and—

20

(a)   

in the case of an instrument subject to the affirmative procedure, the

instrument is not to be made unless it has been laid before and

approved by a resolution of the Scottish Parliament;

(b)   

in the case of an instrument subject to the negative procedure, the

instrument is subject to annulment in pursuance of a resolution of the

25

Scottish Parliament.

37      

Financial provisions

(1)   

There shall be paid out of money provided by Parliament any increase attributable 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

30

Crown by virtue of this Act which are not payable into the National Loans Fund.

38      

Commencement

(1)   

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

(a)   

sections 34 to 37;

(b)   

this section;

35

(c)   

section 39.

(2)   

The following provisions come into force at the end of the period of two

months beginning with the day on which this Act is passed—

(a)   

section 14;

(b)   

Part 3, except section 26(7) (and Schedule 3) and section 32.

40

(3)   

Subsection (2)(b) is subject to the provision made in the following sections as

to how those sections have effect—

 
 

Scotland Bill
Part 4 — Miscellaneous and General

28

 

(a)   

sections 26(1) to (6) and 27;

(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 made by statutory instrument appoint—

5

(a)   

section 26(7) and Schedule 3;

(b)   

section 32.

(5)   

The other provisions of this Act come into force on such day as the Secretary of

State may by order made by statutory instrument appoint.

(6)   

The Secretary of State or the Treasury may appoint different days for different

10

purposes.

39      

Short title

This Act may be cited as the Scotland Act 2011.

 
 

 
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