2Permitted deduction by liable persons from levy payable(1)

The 2024 Act is modified as follows.

(2)

After section 12 insert—

12APermitted deduction by liable persons from levy payable(1)

In introducing or modifying a VL scheme, a local authority may permit liable persons to deduct and retain an amount from the levy payable in respect of a chargeable transaction.

(2)

If a local authority permits deductions to be made by liable persons under subsection (1), it must set the maximum amount of such a deduction in relation to the VL scheme

(in this Act, the maximum amount set in relation to a VL scheme is referred to as “the permitted deduction”).

(3)

The permitted deduction may be—

(a)

a fixed amount, or

(b)

a percentage of the amount of the levy payable in respect of a chargeable transaction.

(4)

The permitted deduction may be different for different purposes.

(5)

The power under subsection (1) may be exercised by a local authority only if it is satisfied that it is appropriate to do so to take account of administrative costs that may be incurred by liable persons in connection with the VL scheme.

12BRegulations: further provision about deductions by liable persons from levy payable(1)

The Scottish Ministers may by regulations make further provision for or in connection with local authorities permitting liable persons under section 12A(1) to deduct and retain an amount from the levy payable in respect of a chargeable transaction.

(2)

Regulations under subsection (1) may, in particular, make provision about—

(a)

local authorities disallowing the deduction and retention of such amounts in relation to relevant periods (within the meaning of section 26(4)),

(b)

the procedure applying in connection with decisions of local authorities to disallow the deduction and retention of such amounts,

(c)

time limits for payment of amounts of unpaid levy following decisions of local authorities to disallow the deduction and retention of such amounts,

(d)

the effect of decisions of local authorities to disallow the deduction and retention of such amounts for the purposes of the imposition of penalties under Chapter 3 of Part 5.

(3)

Regulations under subsection (1) may modify any enactment (including this Act).

(4)

Regulations under subsection (1)—

(a)

are subject to the affirmative procedure if they add to, replace or omit any part of the text of an Act,

(b)

otherwise, are subject to the negative procedure.