The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 1661 contributions
Finance and Public Administration Committee [Draft]
Meeting date: 3 February 2026
Ivan McKee
That would be considered on a general basis across the Scottish Government’s funding for communities and community organisations.
09:30
Finance and Public Administration Committee [Draft]
Meeting date: 3 February 2026
Ivan McKee
I am not committing to that.
Finance and Public Administration Committee [Draft]
Meeting date: 3 February 2026
Ivan McKee
Point taken.
Finance and Public Administration Committee [Draft]
Meeting date: 3 February 2026
Ivan McKee
Officials can keep me right on this. To be clear, the money that comes into the fund would be spent through the fund. No more money would come into the fund, because a tax benefit would incentivise companies to put money into it. With many of them opting out of contributions through that mechanism, that money would remain with Revenue Scotland rather than going into the fund.
Finance and Public Administration Committee [Draft]
Meeting date: 3 February 2026
Ivan McKee
Just to be clear, the tax credit benefit on that is 90 per cent.
Finance and Public Administration Committee [Draft]
Meeting date: 3 February 2026
Ivan McKee
Absolutely. Good morning. I am delighted to be back.
The Land and Buildings Transaction Tax (Co-ownership Authorised Contractual Schemes) (Scotland) Regulations 2026 provide for an exemption from LBTT for qualifying unit transactions within a co-ownership authorised contractual scheme, or CoACS.
The proposed amendments recognise that the issuance, disposal or transfer of a unit within a CoACS is a tax-neutral transaction for LBTT purposes. In other words, it does not represent a disposal or an acquisition of land and property in Scotland. The proposed amendments aim to ensure that an LBTT liability does not arise to investor-level unit transactions where the underlying land and property within a CoACS remain within the scheme itself.
The proposed exemption aims to support such schemes’ investment in Scottish land and property by removing the tax and administrative burdens created by treating an investor-level unit transaction as a land transaction, despite there being no overall change in scheme ownership of the land or property.
I welcome the opportunity to discuss this Scottish statutory instrument and look forward to the committee’s questions.
Finance and Public Administration Committee [Draft]
Meeting date: 3 February 2026
Ivan McKee
The structure of these transactions is such that individual investors own part of an entity that then owns the property. Therefore, if individual investors are moving in and out of that entity, the purpose is clearly not to be able to tax those transactions. The issue is about when the ownership of the property itself is transferred.
The material impact is that those transactions are not taking place in Scotland, which means that investment is not happening. There is a different structure with stamp duty down south, but the effect of it is the same as what we are proposing here, which is that those transactions should not be liable to tax. That obviously creates an environment where it is more advantageous to make those investments south of the border.
There is no tax lost at the moment with those transactions, because they are, in effect, not taking place.
Finance and Public Administration Committee [Draft]
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]
Meeting date: 3 February 2026
Ivan McKee
I have nothing to add.
Finance and Public Administration Committee [Draft]
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.