Part 4ATaxation

F1CHAPTER 2Income Tax

80CPower to set Scottish F2rates for Scottish taxpayers

(1)

The Scottish Parliament may by resolution (a “Scottish rate resolution”) set F3the Scottish basic rate, and any other rates, for the purposes of section 11A of the Income Tax Act 2007 (which provides for the income of Scottish taxpayers which is charged at those rates).

F4(2A)

Where a Scottish rate resolution sets more than one rate it must also set limits or make other provision to enable it to be ascertained, for the purposes of that section, which rates apply in relation to a Scottish taxpayer.

F5(2B)

If income tax is charged at Scottish rates on the non-savings income of a Scottish taxpayer for a tax year (within the meaning of section 11A of the Income Tax Act 2007), those rates are treated for income tax purposes as if they were—

(a)

Scottish rates for all non-savings income other than property income which are set for the tax year at the same rates as the Scottish rates, and

(b)

separate Scottish rates for property income which are set for the tax year at the same rates as the Scottish rates,

but, subject to that, a Scottish rate resolution may not provide for different rates to apply in relation to different types of income.

(2C)

In this Chapter a “Scottish rate” means a rate set by a Scottish rate resolution.

(3)

A Scottish rate resolution applies—

(a)

for only one tax year, and

(b)

for the whole of that year.

F6(4)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5)

F7A Scottish rate must be a whole number or half a whole number F8, or zero.

(6)

A Scottish rate resolution—

(a)

must specify the tax year for which it applies,

(b)

must be made before the start of that tax year, and

(c)

must not be made more than 12 months before the start of that year.

(7)

If a Scottish rate resolution is cancelled before the start of the tax year for which it is to apply—

(a)

the Income Tax Acts have effect for that year as if the resolution had never been passed, and

(b)

the resolution may be replaced by another Scottish rate resolution.

(8)

Standing orders must provide that only a member of the Scottish Government may move a motion for a Scottish rate resolution.