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Seòmar agus comataidhean

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 24 March 2026
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Displaying 1644 contributions

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Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

They would still pay tax if they were transferring the asset out of the fund. The fund is the entity that owns the property, as any other investment vehicle company or individual can own property. When the fund sells the property, the tax would be payable. The structure of each of those funds means that lots of different investors own a part of it. To them, it is a financial investment transaction. When they sell the units within the fund at a point that is further upstream, no tax is payable.

As I said, the same process applies down south. When this approach was introduced here, that aspect was not covered off, and the effect of that is that people are not investing in those funds in Scotland.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

I have nothing to add.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

The Scottish Government’s intended introduction date for the Scottish aggregates tax is 1 April 2026. When it is introduced, Revenue Scotland, Scotland’s tax authority for devolved taxes, will be responsible for the collection and management of the Scottish aggregates tax.

As part of on-going work to commence the Aggregates Tax and Devolved Taxes Administration (Scotland) Act 2024, the Scottish Aggregates Tax (Applicable Rate of Tax) Regulations 2026 make the required provision for the practical application of the Scottish aggregates tax. The regulations provide that, from 1 April 2026, the applicable rate of tax will be £2.16 per tonne of taxable aggregate.

The Scottish aggregates tax rate in 2026 will align with the United Kingdom aggregates levy rate for the same year. That approach will ensure stability and certainty during the transfer of power. The decision was influenced by the block grant adjustment process and it has enabled agreement on a novel method for setting the Scottish aggregates tax block grant adjustment baseline, which reduces risk to the Scottish budget.

I am happy to take questions.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

I will let my officials talk about the specifics of that, but, as I said, the policy intent this year—and the purpose of the regulations—is to set the tax at the same rate as that for the rest of the UK to give us a BGA baseline. Next year, there will be scope to look at varying the rate and other factors that could impact on that.

My officials might be able to say a bit more.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

I think that any engagement and discussions that were had would be a matter of public record. Depending on the group, those minutes might have already been published or will be otherwise available, so I think that we would be very comfortable with sharing them.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

My officials might have more to say on that, but I will be honest and say that I do not expect that it will be a huge boost. It is, however, an exercise that is required in order to create a level playing field.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

These amendment regulations remove entitlement to tax credit for new qualifying contributions to the Scottish landfill communities fund from 1 April 2026. From that point, the fund will enter a managed wind-down period of up to 24 months. The regulations include clear transitional projections, and all contributions made before 1 April 2026 will remain qualifying, will continue to attract tax credit and will be spent on community and environmental projects, as intended.

Throughout the wind-down period, Revenue Scotland and the Scottish Environment Protection Agency will continue to administer and regulate the scheme, ensuring continuity of oversight until the fund is formally closed. Members may wish to note that the decision to close the fund followed a public consultation in 2025 and extensive engagement with Revenue Scotland and SEPA. The regulations will ensure that an orderly and responsible conclusion to the fund will fully meet existing commitments.

I am happy to take questions.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

Yes, we will consider the point.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

Point taken.

Finance and Public Administration Committee [Draft]

Subordinate Legislation

Meeting date: 3 February 2026

Ivan McKee

I think that there already is such a principle. The projections, whether they are from the medium-term financial strategy or whatever, show that the revenues from the tax were expected to reduce over a number of years. It is absolutely the case that that will have been factored into the longer-term calculations for tax and spend, and it is clearly compensated in the round by decisions that are taken on other taxes. Everyone knew that that was the situation. The numbers would have been planned over the medium term, and those taking other tax policy decisions would have done so while fully cognisant of that fact.

On the other side, it is clear that it would have been known that the fund’s community benefit would not continue forever. Everybody would have been well aware of its time-limited nature. At the outset, the question was, “Do you want to take the community benefit for that period of time, or do you want to take no community benefit?” Clearly, the answer was that they would take the community benefit for a period of time.