Scotland Act 2016

Devolved taxes

17Tax on carriage of passengers by air

(1)In Part 4A of the Scotland Act 1998, after Chapter 4 insert—

“CHAPTER 5Tax on carriage of passengers by air

80LTax on carriage of passengers by air

A tax charged on the carriage of passengers by air from airports in Scotland is a devolved tax.”

(2)Tax may not be charged in accordance with that provision on the carriage of passengers boarding aircraft before the date appointed under subsection (7).

(3)Chapter 4 of Part 1 of The Finance Act 1994 (air passenger duty) is amended as follows.

(4)In section 28(4) (a chargeable passenger is a passenger whose journey begins at an airport in the United Kingdom), for “the United Kingdom” substitute “England, Wales or Northern Ireland”.

(5)In section 31(4B) (exception for passengers departing from airports in designated region of the United Kingdom) for “the United Kingdom” substitute “England, Wales or Northern Ireland”.

(6)The Air Passenger Duty (Designated Region of the United Kingdom) Order 2001 (S.I. 2001/808) is revoked.

(7)Subsections (3) to (6) have effect in relation to flights beginning on or after such date as the Treasury appoint by regulations made by statutory instrument.

18Tax on commercial exploitation of aggregate

(1)In Part 4A of the Scotland Act 1998, after the Chapter 5 inserted by section 17 insert—

“CHAPTER 6Tax on commercial exploitation of aggregate

80MTax on commercial exploitation of aggregate

(1)A tax which is charged on aggregate when it is subjected to commercial exploitation in Scotland is a devolved tax.

(2)The tax must not be chargeable when aggregate is subjected to commercial exploitation for fuel.

(3)Aggregate is subjected to commercial exploitation for fuel—

(a)when the aggregate is used as fuel;

(b)when the aggregate is subjected to commercial exploitation for the purpose of extracting or producing anything capable of being used as fuel;

(c)when the aggregate becomes subject to an agreement to use it as mentioned in paragraph (a) or to subject it to commercial exploitation as mentioned in paragraph (b).”

(2)Tax may not be charged in accordance with that provision on commercial exploitation of aggregate which takes place before the date appointed under subsection (4).

(3)In section 16(2) of the Finance Act 2001 (aggregates levy) for “the United Kingdom” substitute “England, Wales or Northern Ireland”.

(4)Subsection (3) and Schedule 1 (further amendments relating to the disapplication of UK aggregates levy to Scotland) have effect in relation to commercial exploitation of aggregate which takes place on or after such date as the Treasury appoint in regulations made by statutory instrument.

19Devolved taxes: further provision

(1)In section 80A of the Scotland Act 1998 (overview of Part 4A), in subsection (1)(b), for “Chapters 3 and 4” substitute “The remaining Chapters”.

(2)The Treasury may by regulations make further provision relating to—

(a)the disapplication of air passenger duty in relation to flights beginning at airports in Scotland;

(b)the disapplication of aggregates levy in relation to commercial exploitation of aggregate in Scotland.

(3)The power conferred by subsection (2) includes power—

(a)to make transitional or saving provision in connection with the coming into force of section 17 or 18 or Schedule 1;

(b)to amend, repeal, revoke or otherwise modify an enactment, whenever passed or made (including this Act).

(4)Section 17(7) and section 18(4) are subject to any provision made by virtue of subsection (3).

(5)Regulations under this section must be made by statutory instrument.

(6)A statutory instrument containing regulations under this section which includes provision amending or repealing a provision of an Act may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

(7)Any other statutory instrument containing regulations under this section, if made without a draft having been approved by a resolution of the House of Commons, is subject to annulment in pursuance of a resolution of the House of Commons.

(8)In this section “enactment” includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978).