Scotland Act 2016

14Amendments of Income Tax Act 2007

(1)The Income Tax Act 2007 is amended as follows.

(2)Section 6 (rates at which income tax is charged) is amended as follows.

(3)In subsection (3) omit paragraph (za).

(4)After that subsection insert—

“(4)See also section 80C of the Scotland Act 1998 which makes provision for the purposes of section 11A (income charged at Scottish rates).”

(5)Omit section 6A (the Scottish basic, higher and additional rates).

(6)In section 10(4) for “the Scottish basic, higher and additional” substitute “Scottish”.

(7)Section 11A (income charged at the Scottish basic, higher and additional rates) is amended as follows.

(8)For subsections (1) to (3) substitute—

“(1A)Income tax is charged at Scottish rates on the non-savings income of a Scottish taxpayer.”

(9)In subsection (6) for the words after “determining” substitute “which part of a Scottish taxpayer’s income consists of savings income”.

(10)In the title for “the Scottish basic, higher and additional” substitute “Scottish”.

(11)In section 13 (income charged at dividend rates)—

(a)in subsection (1)(b) omit “or the Scottish basic rate,”,

(b)in subsection (2)(b) omit “or the Scottish higher rate,”,

(c)in subsection (2A)(b) omit “or the Scottish additional rate,”,

(d)in subsection (4) omit “or the Scottish basic, higher or additional rate”, and

(e)after subsection (4) insert—

“(5)In relation to an individual who is a Scottish taxpayer, references in this section to income that would otherwise be charged at a particular rate are to be read as references to income that would, if the individual were not a Scottish taxpayer, be charged at that rate (and subsection (4) is to be read accordingly).”

(12)For section 16(1)(za) (purposes for which section 16 has effect in relation to income tax of a Scottish taxpayer) substitute—

“(za)which part of a Scottish taxpayer’s income consists of savings income,”.

(13)In section 989 (definitions for the purposes of the Income Tax Acts)—

(a)omit the definitions of “Scottish additional rate” and “Scottish higher rate”,

(b)in the definition of “Scottish basic rate”, for the words after “Scottish basic rate” substitute “in relation to a tax year, means the Scottish basic rate set by a Scottish rate resolution for that year”, and

(c)at the appropriate place insert—

• ““Scottish rate” in relation to a tax year, means a rate set by a Scottish rate resolution for that year,”, and

• ““Scottish rate resolution” means a resolution of the Scottish Parliament under section 80C of the Scotland Act 1998,”.

(14)In Schedule 4 (index of defined expressions)—

(a)omit the entries relating to the Scottish additional rate and the Scottish higher rate,

(b)in the entry relating to the Scottish basic rate for “6A (as applied by section 989)” substitute “989”,

(c)at the appropriate place insert—

(d)at the appropriate place insert—

(15)The amendments made by this section—

(a)come into force on the day appointed by the Treasury under section 13(14), and

(b)have effect in relation to the tax year appointed by the Treasury under section 13(15) and subsequent tax years.