Scotland Bill

House of Commons

Session 2010 - 11
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Other Bills before Parliament

Scotland Bill

Scotland Bill
Part 3 — Finance
22

Scottish tax on land transactions
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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;
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(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
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(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
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section 80I—

Government

A Minister of the Crown

The Scottish Ministers

A Northern Ireland department
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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.”
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(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
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(1)
Part 4 of the Finance Act 2003 (stamp duty land tax) is amended as follows.

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Part 3 — Finance
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(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
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(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.
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(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
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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—
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(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
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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
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(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
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section on a disposal if the disposal is made before the date appointed under
section 31(4).

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Part 3 — Finance
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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
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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
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Borrowing by the Scottish Ministers
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(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
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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
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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.
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(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.
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(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.”
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(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.

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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
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appropriate place insert—

“Section 67A(2)
Type E”.

Part 4
Miscellaneous and General
Miscellaneous
20
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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
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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
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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,
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(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—

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Part 4 — Miscellaneous and General
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(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.”
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(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.
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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
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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
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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

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Part 4 — Miscellaneous and General
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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
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subject to annulment in pursuance of a resolution of the House of Commons.
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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—
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(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
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Scottish Parliament.
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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.
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Commencement
(1)
The following come into force on the day on which this Act is passed—
(a)
sections 34 to 37;
(b)
this section;
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(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.
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(3)
Subsection (2)(b) is subject to the provision made in the following sections as
to how those sections have effect—

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Part 4 — Miscellaneous and General
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(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.
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Short title
This Act may be cited as the Scotland Act 2011.