The Scotland Act 2016 (Income Tax Consequential Amendments) Regulations 2017
| Jurisdiction | UK Non-devolved |
| Citation | SI 2017/468 |
2017 No. 468
Income Tax
The Scotland Act 2016 (Income Tax Consequential Amendments) Regulations 2017
Made 23th March 2017
Coming into force in accordance with regulation 1
A draft of these Regulations was laid before and approved by the House of Commons in accordance with section 15(12) of the Scotland Act 20161.
The Treasury, in exercise of the power conferred by section 15(8) and (9) of the Scotland Act 2016 makes the following Regulations:
Citation, commencement and effect
1.—(1) These Regulations may be cited as the Scotland Act 2016 (Income Tax Consequential Amendments) Regulations 2017 and come into force on the day after the day on which they are made.
(2) The amendments made by these Regulations have effect in relation to the tax year appointed by the Treasury under section 13(15)2of the Scotland Act 2016 and subsequent tax years.
Amendments to the Finance Act 2004
2. Part 4 (pension schemes etc.) of the Finance Act 20043is amended as follows.
3.—(1) Section 1924(relief at source) is amended as follows.
(2) In subsection (4)—
(a)
(a) for “, the Scottish higher rate,” substitute “or” and
(b)
(b) omit “or the Scottish additional rate”.
(3) After subsection (4) insert —
“4A Where—
(a) the individual is a Scottish taxpayer for the tax year,
(b) (apart from this section) income tax is chargeable in respect of any part of that individual’s total income for the tax year at a Scottish rate5, and
(c) that rate is higher than the Scottish basic rate for that year,
on the making of a claim, the Scottish basic rate limit, and any other Scottish rate limit for the tax year in the individual’s case, are increased by the amount of the contribution.”.
4.—(1) Section 2276(annual allowance charge) is amended as follows.
(2) In subsection (4A)—
(a)
(a) in paragraph (a) omit “or, in the case of a Scottish taxpayer, the Scottish basic rate”,
(b)
(b) in paragraph (b) omit, “or, in the case a Scottish taxpayer, the Scottish higher rate”, and
(c)
(c) in paragraph (c) omit, “or, in the case of a Scottish taxpayer, the Scottish additional rate”.
(3) At the end of subsection (4A) insert—
“But subsection (4AA) applies in the case of a Scottish taxpayer.”.
(4) After subsection (4A) insert—
“4AA The appropriate rate for a Scottish taxpayer is—
(a) where the only Scottish rate is the Scottish basic rate (the “SBR”), that rate, or
(b) where there is more than one Scottish rate—
(i) the SBR in relation to so much (if any) of the chargeable amount as, when added to the individual’s reduced net income for the tax year, does not exceed the Scottish basic rate limit (“SBRL”) for the tax year,
(ii) the next highest rate after the SBR in relation to so much (if any) of the chargeable amount as, when so added, exceeds the SBRL for the tax year but does not exceed the rate limit for that rate for the tax year, and
(iii) where applicable, any other higher Scottish rate in relation to so much (if any) of the chargeable amount as, when so added, does not exceed the rate limit for that rate for the tax year.”.
(5) For subsection (4C) substitute—
“4C Where—
(a) the basic rate limit,
(b) the higher rate limit,
(c) the Scottish basic rate limit, or
(d) any other Scottish rate limit,
is (in accordance with section 192 of this Act or section 414 of ITA 2007) increased in the case of the individual, the references to the limit in subsections (4A) and (4AA) are to the limit as so increased.”.
5.—(1) Section 237B7(liability of scheme administrator) is amended as follows.
(2) In subsection (4)—
(a)
(a) in paragraph (a) omit—
(i) “or the Scottish additional rate”, and
(ii) “or, in the case of a Scottish taxpayer, the Scottish additional rate”,
(b)
(b) in paragraph (b) omit—
(i) “or the Scottish higher rate”, and
(ii) “or, in the case of a Scottish taxpayer, the Scottish higher rate,”, and
(c)
(c) in paragraph (c) omit “or, in the case of a Scottish taxpayer, the Scottish basic rate”.
(3) At the end of subsection (4) insert—
“But subsection (4A) applies in the case of a Scottish taxpayer.”.
(4) After subsection (4) insert—
“4A In the case of a Scottish taxpayer, the “relevant rate” in subsection (3)(a) means—
(a) where the only Scottish rate is the Scottish basic rate, that rate;
(b) where there is more than one Scottish rate—
(i) the highest Scottish rate in relation to so much of the excess as does not exceed the amount (if any) on which tax is chargeable in the case of the individual at that rate by virtue of section 227(4AA)(b)(ii) or (iii),
(ii) the next highest Scottish rate in relation to so much of the excess as is not within sub-paragraph (i) and does not exceed the amount (if any) on which tax is so chargeable by virtue of section 227(4AA)(b)(i), (ii) or (iii),
(iii) if there is one, the next highest Scottish rate in relation to so much of the excess as is not within sub-paragraph (i) or (ii) and does not exceed the amount (if any) on which tax is so chargeable by virtue of section 227(4AA)(b)(i), (ii) or (iii),
and so on.”
6. In section 279(1)8(other definitions) after the definition of “pensionable age” insert—
““Scottish basic rate limit” means a rate limit set by the Scottish Parliament under section 80C(2A) of the Scotland Act 1998 for the purposes of determining the extent to which a Scottish taxpayer’s income is charged at the Scottish basic rate where a Scottish rate resolution under that Act has set more than one rate for the tax year.”.
7. In section 280(2) (abbreviations and general index), omit the entries for “Scottish additional rate”, “Scottish basic rate” and “Scottish higher rate”.
Amendments to the Income...
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