Regulation of Legal Services (Scotland) Act 2025

Prospective

63 Annual general levy and complaints levy S

(1) The 2007 Act is amended as follows.

(2) In section 27 (annual general levy)—

(a) in subsection (1)—

(i) for paragraph (c) substitute—

“(c) person who has acquired a right to provide legal services by virtue of Chapter 3 of Part 1 the 2025 Act (or section 27 of the 1990 Act),”,

(ii) after paragraph (d), insert—

“(e) authorised legal business,”,

(b) in subsection (2)(a), for “paragraphs (a) to (d)” substitute “paragraphs (a) to (e)”,

(c) in subsection (4), in the opening words, for “paragraphs (a) to (d)” substitute “paragraphs (a) to (e)”,

(d) for subsection (5) substitute—

“(5) If any person who is liable under subsection (1) to pay the annual general levy (“the liable person”) fails to pay any amount of the levy, or pays any such amount late—

(a) where the liable person is an individual, the failure to pay or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the liable person,

(b) where the liable person is not an individual and where the failure to pay or late payment involves the connivance or consent of (or is attributable to the neglect of) a responsible official of a liable person, the failure to pay or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the responsible official.

(6) In subsection (5), a “responsible official” of a liable person is—

(a) where the liable person is a company, a director, secretary, manager or other similar officer,

(b) where the liable person is a limited liability partnership, a member,

(c) where the liable person is an ordinary partnership, a partner,

(d) where the liable person is another body or association, a person who is concerned in the management or control of its affairs,

but in each case also extends to a person purporting to act in such a capacity.”.

(3) In section 28 (complaints levy)—

(a) in subsection (1), for “mentioned in subsection (2)” substitute “specified in rules made under section 32(1)”,

(b) subsection (2) is repealed,

(c) for subsection (4) substitute—

“(4) If any practitioner who is liable under subsection (1) to pay the complaints levy fails to pay any amount of the levy, or pays any such amount late—

(a) where the practitioner is an individual, the failure or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the practitioner,

(b) where the practitioner is not an individual and where the failure or late payment involves the connivance or consent of, or is attributable to the neglect of, a responsible official of the practitioner, the failure or late payment may be treated as professional misconduct or unsatisfactory professional conduct by the responsible official.

(5) In subsection (4), a “responsible official” of a practitioner is—

(a) where the practitioner is a company, a director, secretary, manager or other similar officer,

(b) where the practitioner is a limited liability partnership, a member,

(c) where the practitioner is an ordinary partnership, a partner,

(d) where the practitioner is another body or association, a person who is concerned in the management or control of its affairs,

but in each case also extends to a person purporting to act in such a capacity.”.

(4) In section 29 (amount of levies and consultation)—

(a) in subsection (1), after paragraph (b) (but before the closing words), insert—

“(c) annual contribution,

(d) complaints contribution,”,

(b) in subsection (2), for the words from “must” to the end of the subsection substitute “may be—

(a) of different amounts for different persons (or persons of different descriptions) who are liable under section 27(1) to pay it, including different amounts for persons who are individuals and persons who are not,

(b) of different amounts (including nil) in different circumstances based on such criteria (such as the size and income of a person who is not an individual who is liable under section 27(1) to pay the annual general levy) as rules made under section 32(1) may specify.”,

(c) after subsection (2) insert—

“(2A) Rules under section 32(1) may provide for circumstances in which the Commission may waive a portion of the amount of annual general levy which would otherwise require to be paid.”,

(d) in subsection (5)(a), in sub-paragraph (ii), for “and the complaints levy” substitute “, the complaints levy, the annual contribution and the complaints contribution”,

(e) for subsection (6) insert—

“(6) For the purpose mentioned in subsection (6A)—

(a) each relevant professional organisation must provide the Commission with an estimate of the number of persons as respects whom it is the relevant professional organisation and who it anticipates should be liable under section 27(1) to pay the annual general levy for the financial year concerned, and

(b) each relevant professional organisation that is a category 1 regulator must assist the Commission with its enquiries in relation to the size and income of each authorised legal business that is authorised by the organisation to provide legal services.

(6A) The purpose referred to in subsection (6) is the purpose of informing the Commission in relation to—

(a) the inclusion in the Commission’s proposed budget for each financial year of the proposed amount of the annual general levy,

(b) the Commission’s determination under subsection (1) of the amount of the annual general levy in respect of each financial year.”,

(f) in subsection (7), for “and the complaints levy” substitute “, the complaints levy, the annual contribution and the complaints contribution”.

Commencement Information

I1 S. 63 not in force at Royal Assent, see s. 103(3)