Official Report 499KB pdf
Scottish Aggregates Tax (Miscellaneous Amendment) Regulations 2026 [Draft]
Revenue Scotland and Tax Powers Act (Interest on Unpaid Tax and Interest Rates in General) Amendment Regulations 2026 (SSI 2026/17)
Revenue Scotland and Tax Powers Act (Involved Third Party) Amendment Order 2026 (SSI 2026/18)
::Good morning and welcome to the eighth meeting in 2026 of the Finance and Public Administration Committee. We have three items of subordinate legislation to consider and I intend to allow around 30 minutes for this part of the meeting. We will begin with an evidence session with the Minister for Public Finance on the draft Scottish Aggregates Tax (Miscellaneous Amendment) Regulations 2026. The minister is joined by Scottish Government officials Jonathan Waite, who is the aggregates tax bill team leader, Cara Woods, who is senior policy adviser on aggregates and landfill taxes, and Emma Phillips, who is a lawyer with the Scottish Government legal directorate. I welcome our witnesses to the meeting and invite the minister to make a short opening statement.
::The Scottish Government is working closely with the United Kingdom Government, His Majesty’s Revenue and Customs, and Revenue Scotland to ensure the successful introduction of the Scottish aggregates tax. This has included productive engagement on cross-border legislation to ensure that the administrative arrangements for the Scottish aggregates tax and the UK aggregates levy work together effectively.
The three Scottish statutory instruments that are under consideration today make provisions that are required to ensure the practical operation of the Scottish aggregates tax, which the Scottish Government remains on track to deliver on 1 April 2026.
The Scottish Aggregates Tax (Miscellaneous Amendment) Regulations 2026 cover the tax treatment of aggregate that is collected and transported across the border and complex multistage supply chains involving intermediaries. This is a type of indirect supply where a business acts as an intermediary between the aggregate producer and the end user of aggregate—for example, a builders’ merchant.
The regulations provide taxpayers with clarity on the operation of the Scottish aggregates tax. They are intended to prevent double taxation, minimise market distortion and support a smooth transition from the UK aggregates levy to the Scottish aggregates tax. The approach taken follows detailed and close collaboration with Revenue Scotland, HMRC, and industry stakeholders, including through our expert advisory group. That engagement preceded a public consultation that was held in June last year on proposed approaches and continued following the closure of the consultation to ensure that all relevant cross-border scenarios had been considered. Following engagement with HMRC, complementary amendments to the UK aggregates levy legislation are being made through the Finance (No 2) Bill to ensure that the two taxes dovetail.
The SSIs under consideration today also include the Revenue Scotland and Tax Powers Act (Involved Third Party) Amendment Order 2026, which makes provisions that enable the inspection of the business premises of involved third parties for the purposes of the tax.
In addition, the Revenue Scotland and Tax Powers Act (Interest on Unpaid Tax and Interest Rates in General) Amendment Regulations 2026 provide that interest on an amount of unpaid Scottish aggregates tax is due from the filing date of the tax return for the purposes of the tax.
The changes made by these two SSIs are made under the Revenue Scotland and Tax Powers Act 2014, and were consulted on as part of the Scottish aggregates tax administration regulations public consultation. The SSIs will ensure that the Scottish aggregates tax is operationally effective in line with the wider legislative regime for the devolved taxes.
The three instruments are intended to support the effective and efficient administration of the Scottish aggregates tax by Revenue Scotland. In particular, introducing secondary legislation and provisions in relation to certain cross-border movements of aggregate will enable taxpayers to understand the tax treatment of those movements under the new Scottish aggregates tax regime.
I am happy to take questions, convener.
::I am generally happy with the instruments, minister. I have just one question. The policy note intimates that the instrument will not have much impact on local government, but four Scottish local authorities have their own quarries so they are taxed in a separate way. At the time, did any of the local government officers express any concern about this?
::No, not that I am aware of, but I will ask my officials to say whether there has been any feedback on that.
There was no concern as part of the consultation analysis. The scenarios that we have been looking at cover cross-border movements that originate in the rest of the UK and come into Scotland. We engaged with the Convention of Scottish Local Authorities throughout the process but it did not highlight any issues.
::I just have one point on the Revenue Scotland and Tax Powers Act (Involved Third Party) Amendment Order. Could you give us an example of a scenario where this might have an impact? Who would an involved third party be and why would we want to—
::I will ask my officials to come in on some of the detail on that. In general, it is about the point at which the tax is levied or becomes due, which would typically be about where it is used. If it is quarried in Scotland and used in Scotland, the tax is payable in Scotland. In scenarios where it is moved across the border in either direction, the point at which the quarry sells it on to the intermediary is the point at which the liability would arise. There would obviously be various scenarios within that, and it is important that we use the regulations to make sure that all the scenarios are considered, so that there are no loopholes.
::You are talking about entering the business premises of an involved third party. Why would anyone want to do that? Is it just to check?
::Oh, you are asking about that provision. Yes, it is so that, in a case where there are questions or where Revenue Scotland wants to verify what is happening with regard to that movement, it would have the power to do that, as you would expect.
::So, as well as checking on the quarry itself, Revenue Scotland will be able to check other organisations that take the material. Is that the idea?
::Yes. None of my officials are saying that I am wrong, so I must be right.
::As we appear to have no more questions, I turn to item 2, which is formal consideration of the motion on the instrument. I invite the minister to move and speak to motion S6M-20639.
Motion moved,
That the Finance and Public Administration Committee recommends that the Scottish Aggregates Tax (Miscellaneous Amendment) Regulations 2026 [draft] be approved.—[Ivan McKee]
Motion agreed to.
::I thank the minister and move to the next item.
We will hear from the Minister for Public Finance on two instruments that are subject to the negative procedure—you touched on them earlier, minister, but never mind. They are SSI 2026/17 and SSI 2026/18. The minister is supported by the same three Scottish Government officials as last time. I invite the minister to make a short opening statement covering both instruments.
::Convener, I refer to my earlier comments.
::Do members have any questions?
As members have no further questions or comments, I thank the minister and his officials for their evidence.
::Thank you. I will see you again.
::I will call a break until the appearance of our next witnesses.
10:09
Meeting suspended.
10:27
On resuming—
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