Connection to Scotland

2.—(1) The 2016 Act is amended as follows.

(2) In section 164(1) (protected status: the debtor), before “grants a trust deed for a single estate”, insert “has a sufficient connection to Scotland and”.

(3) After section 164(1), insert—

“(1A) For the purposes of subsection (1), a debtor has a sufficient connection to Scotland if—

(a) in the case of a debtor who is a living individual, the individual—

(i) was habitually resident in Scotland at any time in the year immediately preceding the date the trust deed is granted, or

(ii) had an established place of business in Scotland within that period,

(b) in the case of a debtor which is a body or entity of a kind mentioned in paragraphs (b) to (f) of subsection (1), the body or entity—

(i) had an established place of business in Scotland at any time in the year immediately preceding the date the trust deed is granted, or

(ii) was constituted or formed under Scots law and at any time carried on business in Scotland.”.