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Aggregates Tax and Devolved Taxes Administration (Scotland) Bill

Aggregates is the term used to describe materials, such as sand, rock or gravel, compacted together to be used in construction and other industries.

This Bill sets out the aggregates tax to be created for Scotland.

The Bill also makes some changes to how existing Scottish taxes work. 

This is a Government bill

The Bill was introduced on 14 November 2023. Stage 3 ended on 1 October 2024.

Introduced: the Bill and its documents

Overview

The Bill creates an aggregates tax and states that this tax will be administered by Revenue Scotland.

The Bill explains what type of aggregate should be taxed, who should pay the tax, and exemptions from the tax. The Bill explains how the tax should be calculated and gives the Scottish Ministers the power to set the rate of tax. The Bill also creates several penalties, including a penalty for anyone who does not pay the tax when they are required to do so.

The Bill also makes changes to the Revenue Scotland and Tax Powers Act 2014. These changes include:

  • how Revenue Scotland can communicate with taxpayers
  • powers to let Revenue Scotland automate some of its work (this could include work being done by devices such as computers)
  • what Revenue Scotland can do in situations where a person is owed money from Revenue Scotland but also owes money to Revenue Scotland.

Why the Bill was created

The Finance Act 2001 provides for a UK aggregates levy. The Scotland Act 2016 allows Scotland to create its own aggregates tax, to replace the UK levy. Three other taxes have already been devolved to Scotland.

These are the Land and Buildings Transaction Tax, the Scottish Landfill Tax and the Air Departure Tax. This Bill sets out the aggregates tax to be created for Scotland.

The Bill also makes changes to the Revenue Scotland and Tax Powers Act 2014 about how Revenue Scotland manages Scottish taxes. Including them in this Bill avoids the need for a separate Bill.

Accompanying Documents

Explanatory Notes (231KB, pdf) posted 14 November 2023

Policy Memorandum (337KB, pdf) posted 14 November 2023

Financial Memorandum (146KB, pdf) posted 14 November 2023

Delegated Powers Memorandum (197KB, pdf) posted 15 November 2023

Statements on legislative competence (136KB, pdf) posted 14 November 2023

Accompanying Documents (print versions)

Explanatory Notes (343KB, pdf) posted 14 November 2023

Policy Memorandum (369KB, pdf) posted 14 November 2023

Financial Memorandum (222KB, pdf) posted 14 November 2023

Delegated Powers Memorandum (407KB, pdf) posted 14 November 2023

Statements on legislative competence (161KB, pdf) posted 14 November 2023

Financial Resolution

The Presiding Officer has decided under Rule 9.12 of Standing Orders that a financial resolution is required for this Bill.

Research on the Bill

The Scottish Parliament's Information Centre (SPICe) prepares impartial research and analysis to assist MSPs in their examination of Bills and other parliamentary business.

Research briefing on the Aggregates and Devolved Taxes Administration (Scotland) Bill

The Bill was introduced on 14 November 2023

Stage 1: general principles

At Stage 1, the Bill is given to a lead committee. This is usually the committee whose remit most closely relates to the subject of the Bill. The lead committee will consider and report on the Bill. Other committees may also examine the Bill and report to the lead committee. Finally, there is a debate and vote by all MSPs on the general principles of the Bill. If the general principles are not agreed to, then the Bill ‘falls’ and can’t become law.

Timetable for Stage 1

The Parliament agreed that consideration of the Bill at Stage 1 be completed by 17 May 2024.

Lead committee examines the Bill

The lead committee for this Bill is the Finance and Public Administration Committee.

Call for views (closed)

The Finance and Public Administration Committee held a call for views to help inform its examination of the Bill.

The Committee received 10 submissions to its call for views.

Read the call for views

Meetings of the lead committee

Correspondence: lead committee

Aggregates Tax and Devolved Taxes Administration (Scotland) Bill - Letter of 29 August 2024

Letter from the Minister for Public Finance to the Convener of 29 August 2024

Scottish Government response to Stage 1 report on the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill - Letter of 15 May 2024

Letter from the Minister for Community Wealth and Public Finance to the Convener of 15 May 2024

Aggregates Tax and Devolved Taxes Administration (Scotland) Bill - follow-up correspondence from meeting on 12 March 2024

Letter from the Head of Tax (Employment and Devolved Taxes), ICAS to the Convener of 16 March 2024

Stage 1 report by the lead committee

The Finance and Public Administration Committee published its report on 29 April 2024.

Aggregates Tax and Devolved Taxes Administration (Scotland) Bill Stage 1 Report

The Committee received the following response to its report:

Letter from the Minister for Community Wealth and Public Finance (217KB, pdf) posted 16 May 2024

Work by other committees

Delegated Powers and Law Reform Committee

Meetings

Report

The Delegated Powers and Law Reform Committee published its report on 12 March 2024.

Read the report

Delegated Powers and Law Reform Committee Correspondence

Aggregates Tax and Devolved Taxes Administration (Scotland) Bill response from the Scottish Government

Letter from the Minister for Community Wealth and Public Finance to the Convener, 16 February 2024

Aggregates Tax and Devolved Taxes Administration Scotland Bill

Letter from the Convener to the Deputy First Minister and Cabinet Secretary for Finance, 1 February 2024


Stage 1 Debate and decision

A Stage 1 debate took place on 16 May 2024 to consider and decide on the general principles of the Bill.

  • Motion title: Aggregates Tax and Devolved Taxes Administration (Scotland) Bill: Financial Resolution
  • Text of motion: That the Parliament, for the purposes of any Act of the Scottish Parliament resulting from the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill, agrees to— (a) any expenditure of a kind referred to in Rule 9.12.3A of the Parliament’s Standing Orders arising in consequence of the Act, and (b) any tax imposed in consequence of the Act in relation to which Rule 9.12.3B(a) of the Parliament’s Standing Orders applies.
  • Submitted by: Shona Robison
  • Date lodged: Friday, 05 April 2024
  • Motion reference: S6M-12713
  • Current status: Taken in the Chamber on Thursday, 16 May 2024

See further details of the motion


  • Motion title: Aggregates Tax and Devolved Taxes Administration (Scotland) Bill
  • Text of motion: That the Parliament agrees to the general principles of the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill.
  • Submitted by: Tom Arthur
  • Date lodged: Tuesday, 14 May 2024
  • Motion reference: S6M-13221
  • Current status: Taken in the Chamber on Thursday, 16 May 2024

See further details of the motion


Parliament agreed the general principles of the Bill

The Bill ended Stage 1 on 16 May 2024

Stage 2: changes to the Bill

At Stage 2, MSPs can propose changes to a Bill. These are called 'amendments'. Any MSP can suggest amendments but only members of the Stage 2 committee can decide on them. 

Meeting on amendments

Documents with the amendments considered and debated at the meeting held on 11 June 2024.

Marshalled List of Amendments for Stage 2 (343KB, pdf) posted 06 June 2024

Groupings of Amendments for Stage 2 (377KB, pdf) posted 06 June 2024

Revised Documents 

Revised Explanatory Notes (457KB, pdf) posted 22 August 2024

Supplementary Delegated Powers Memorandum (222KB, pdf) posted 24 June 2024

Revised Documents (print versions)

Revised Explanatory Notes (499KB, pdf) posted 22 August 2024

Supplementary Delegated Powers Memorandum (328KB, pdf) posted 24 June 2024

Committee work after stage 2

Delegated Powers and Law Reform Committee

Meetings
10 September 2024

Read the agenda, papers and minutes for this meeting

Report

The Delegated Powers and Law Reform Committee published at report on the Bill after Stage 2 on 19 September 2024.

Read the report

The Bill ended Stage 2 on 11 June 2024

Stage 3: final changes and vote

At Stage 3, MSPs can propose further amendments (changes) to the Bill. These are debated and decided on in the Debating Chamber. At this stage, all MSPs can vote on them.  There is then a debate on whether to pass the Bill. If the Bill is not passed, it ‘falls’ and can't become law. 

Debate on proposed amendments

Documents with the amendments considered and debated at the meeting on 1 October 2024.

Marshalled List of Amendments for Stage 3 (162KB, pdf) posted 25 September 2024

Groupings of Amendments for Stage 3 (183KB, pdf) posted 25 September 2024

Final debate on the Bill

Once MSPs have decided on the amendments, they debate whether to pass the Bill.

  • Motion title: Aggregates Tax and Devolved Taxes Administration (Scotland) Bill
  • Text of motion: That the Parliament agrees that the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill be passed.
  • Submitted by: Ivan McKee
  • Date lodged: Monday, 30 September 2024
  • Motion reference: S6M-14710
  • Current status: Taken in the Chamber on Tuesday, 01 October 2024

Result 112 for, 0 against, 0 abstained, 17 did not vote Vote Passed

See further details of the motion


Parliament decided to pass the Bill

The Bill ended Stage 3 on 1 October 2024

What's next?

The Bill has been passed by the Parliament. It will become an Act of the Scottish Parliament once it receives Royal Assent from the King. This usually happens after around 4 weeks. During that time the Bill will be looked at to ensure it is within the powers of the Scottish Parliament. It may not be sent for Royal Assent if an issue is found.