PART 2Consequential amendments
13In section 1 of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of resolutions of House of Commons), omit subsection (3A).
14(1)In section 7 of TMA 1970 (notice of liability to income tax and capital gains tax), in subsection (6), after “the basic rate,” insert “the Scottish basic rate,”.
(2)The amendment made by sub-paragraph (1) has effect in relation to the tax year appointed by the Treasury under section 25(5) of the Scotland Act 2012 and subsequent tax years.
15(1)TCGA 1992 is amended as follows.
(2)In section 4 (rates of capital gains tax), in subsections (4) and (5), after “the higher rate” insert “, the Scottish higher rate”.
(3)In section 4A (section 4: special cases), in subsection (5), after “at the higher rate” insert “, the Scottish higher rate”.
(4)The amendments made by this paragraph have effect in relation to the tax year appointed by the Treasury under section 25(5) of the Scotland Act 2012 and subsequent tax years.
16(1)The Scotland Act 1998 is amended as follows.
(2)In section 80C (power to set Scottish rate for Scottish taxpayers), for subsection (2) substitute—
“(2)See section 6A of the Income Tax Act 2007 for provision about the calculation of those rates and section 11A of that Act for provision about the income charged at those rates.”
(3)Section 80G (supplemental powers to modify enactments) is amended in accordance with sub-paragraphs (4) to (8).
(4)For subsection (1) substitute—
“(1)The Treasury may by order modify section 11A of the Income Tax Act 2007 (income charged at the Scottish basic, higher and additional rates) for the purpose of altering—
(a)the definition of the income which is charged to income tax at the rates provided for under the section, or
(b)the application of the section in relation to a particular class of income which is so charged.
(1A)The Treasury may by order modify any enactment not contained in Chapter 2 of Part 2 of the Income Tax Act 2007 (rates at which income tax is charged) so that it makes provision, in relation to a Scottish taxpayer, by reference to the Scottish basic rate, the Scottish higher rate or the Scottish additional rate, instead of the basic rate, the higher rate or the additional rate.
(1B)If the Treasury consider it necessary or expedient to do so, they may by order provide that—
(a)the Scottish rate set by the Parliament for a tax year, or
(b)the fact that the Scottish rate has not been so set for a tax year,
does not require any change in the amounts repayable or deductible under PAYE regulations between the beginning of that year and such later date as may be specified in the order.”
(5)In subsection (2), for the words from “with—” to the end substitute “with an order under subsection (1), (1A) or (1B)”.
(6)Omit subsection (3).
(7)After subsection (4) insert—
“(5)The power under subsection (1) does not include power to provide that any income which is—
(a)savings income, or
(b)dividend income which would otherwise be charged to income tax at a rate provided for under section 13 of the Income Tax Act 2007,
is income which is charged to income tax at a rate provided for under section 11A of that Act.”
(8)In section 110 (Scottish taxpayers for social security purposes), in subsection (2)—
(a)for “basic rate” substitute “Scottish basic rate, Scottish higher rate or Scottish additional rate (within the meaning of the Income Tax Acts)”, and
(b)omit the words from “(instead of” to the end.
(9)Schedule 7 (procedure for subordinate legislation) is amended in accordance with sub-paragraphs (10) and (11).
(10)In paragraph 1(2)—
(a)omit the entry for section 79, and
(b)at the appropriate place insert—
(11)At the end of paragraph 1, omit the Note relating to the entry for section 79.
(12)Sub-paragraph (8) comes into force on such day as the Secretary of State may by order made by statutory instrument appoint.
(13)Sub-paragraphs (10)(a) and (11) come into force on such day as the Treasury may by order appoint.
17In consequence of the amendments made by this Schedule, in the Scotland Act 2012 omit—
(a)section 26 (income tax for Scottish taxpayers),
(b)paragraph 1(2)(a) and (b) of Schedule 2 (amendments to section 110(2) of the Scotland Act 1998), and
(c)paragraph 1(4) of that Schedule (amendments to Schedule 7 to the Scotland Act 1998 relating to section 80G of that Act).