Aggregates Tax and Devolved Taxes Administration (Scotland) Act 2024

58 Set-off by Revenue Scotland

(1) The Revenue Scotland and Tax Powers Act 2014 is modified as follows.

(2) After section 251B (as inserted by section 57(2)) insert—

“Set-off by Revenue Scotland

251C Set-off by Revenue Scotland

(1) This section applies where there is both a credit and a debit in relation to a person.

(2) In this section and section 251D—

• “credit”, in relation to a person, means—

  (a)

  a sum that is payable by Revenue Scotland to a person, or

  (b)

  a relevant sum that may be repaid by Revenue Scotland to a person,

• “debit”, in relation to a person, means a sum that is payable by the person to Revenue Scotland (including under a contract settlement or a settlement agreement).

(3) For the purposes of paragraph (b) of the definition of “credit” in subsection (2), a “relevant sum” in relation to a person means a sum that was paid in connection with any liability (including any purported or anticipated liability) of that person to make a payment to Revenue Scotland under or by virtue of an enactment or a contract settlement or a settlement agreement.

(4) For the purposes of the definition of “debit” in subsection (2), a sum is not to be treated as payable if the sum can be varied or set aside on review or appeal.

(5) Revenue Scotland may set the credit against the debit (subject to section 251D and any obligation of Revenue Scotland to set the credit against another sum).

(6) The obligations of Revenue Scotland and the person concerned are discharged to the extent of any set-off under subsection (5).

(7) In this section references to sums paid, repaid or payable by or to a person include sums that have been or are to be credited by or to a person.

(8) This section does not affect any other power of Revenue Scotland to set off amounts.

251D No set-off where insolvency procedure has been applied

(1) This section applies where—

(a) an insolvency procedure has been applied to a person, and

(b) there is a post-insolvency credit in relation to that person.

(2) Revenue Scotland may not use the power under section 251C to set that post-insolvency credit against a pre-insolvency debit in relation to the person.

(3) In this section—

• “post-insolvency credit” means a credit that—

  (a)

  became due after the insolvency procedure was applied to the person, and

  (b)

  relates to, or to matters occurring at, times after it was so applied,

• “pre-insolvency debit” means a debit that—

  (a)

  arose before the insolvency procedure was applied to the person, or

  (b)

  arose after that procedure was so applied but relates to, or to matters occurring at, times before it was so applied.

(4) Subject to subsection (5), for the purposes of this section an insolvency procedure is to be taken to be applied to a person when—

(a) a bankruptcy order or winding up order or award of sequestration is made or an administrator is appointed in relation to the person,

(b) the person is put into administrative receivership,

(c) if the person is a corporation, the person passes a resolution for voluntary winding up,

(d) a voluntary arrangement comes into force in relation to the person,

(e) a deed of arrangement takes effect in relation to the person,

(f) the person’s estate becomes vested in any other person as the person’s trustee under a trust deed (within the meaning of the Bankruptcy (Scotland) Act 2016), or

(g) the person becomes subject to any other kind of arrangement analogous to those described in paragraphs (a) to (f), anywhere in the world.

(5) In this section, references to the application of an insolvency procedure to a person do not include—

(a) the application of an insolvency procedure to a person at a time when another insolvency procedure applies to the person, or

(b) the application of an insolvency procedure to a person immediately upon another insolvency procedure ceasing to have effect.

(6) For the purposes of this section—

(a) a person is to be treated as being in administrative receivership throughout any continuous period for which there is an administrative receiver of that person (disregarding any temporary vacancy in the office of receiver), and

(b) the reference in subsection (4)(b) to a person being put into administrative receivership is to be interpreted accordingly.

(7) In this section—

• “administrative receiver” means an administrative receiver within the meaning of section 251 of the Insolvency Act 1986 or Article 5(1) of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)),

• “administrator” means a person appointed to manage the affairs, business and property of another person under schedule B1 of that Act or schedule B1 of that Order,

• “deed of arrangement” means a deed of arrangement registered in accordance with Chapter 1 of Part 8 of the Insolvency (Northern Ireland) Order 1989,

• “voluntary arrangement” means a voluntary arrangement approved in accordance with Part 1 or Part 8 of the Insolvency Act 1986 or Part 2 or Chapter 2 of Part 8 of the Insolvency (Northern Ireland) Order 1989.”.