Chamber and committees

:Yes. None of my officials are saying that I am wrong, so I must be right.

:Convener, I refer to my earlier comments.

: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.

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.

:No, not that I am aware of, but I will ask my officials to say whether there has been any feedback on that.

: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.

:Thank you. I will see you again.

I am grateful to the committee for its careful consideration of the Visitor Levy (Amendment) (Scotland) Bill and its associated affirmative regulations, two of which are being formally considered this morning. The purpose of these regulations is to ensure that visitor levy appeals, as and when they arise, can be heard and determined effectively within the Scottish tribunals structure.

The draft First-tier Tribunal for Scotland Local Taxation Chamber and Upper Tribunal for Scotland (Composition and Rules of Procedure) (Miscellaneous Amendment) Regulations 2026 amend tribunal composition and procedural rules to allow for effective administration of visitor levy appeals. With regard to composition, the regulations allow for a legal member to sit alone, or for a legal member to sit with one other member, depending on the complexity of the case being heard. That allows the President of Scottish Tribunals, or the chamber president, as appropriate, to adopt a proportionate approach and make best use of available resources when determining composition.

With regard to rules of procedure, the regulations insert a new part to help ensure clarity, consistency and accessibility for visitor levy appeals. That provides a clear procedural route for appellants and local authorities, setting out the required contents of a notice of appeal; acknowledgement requirements; withdrawal rules; the tribunal’s order-making powers; and the permission-to-appeal procedure. The regulations also provide a tailored procedural framework for appeals to the Upper Tribunal for Scotland arising from visitor levy cases.

The draft First-tier Tribunal for Scotland (Allocation of Functions to the Local Taxation Chamber) Regulations 2026 allocate responsibility for determining visitor levy appeals to the local taxation chamber of the First-tier Tribunal for Scotland. Such appeals have been allocated to the local taxation chamber because it is anticipated that they will be aligned with the chamber’s existing work and expertise.

In relation to both sets of regulations, the Scottish Government consulted with the President of Scottish Tribunals, Lady Wise, and the Lord President as required. I am grateful for their thoughtful feedback, which the Scottish Government has taken on board in full in the development of the regulations as laid.

Finally, I understand that the Delegated Powers and Law Reform Committee considered the regulations on 17 February and no points were raised.

I am happy to answer any questions that the committee may have with regard to both sets of regulations.

10:45

:No.

:The local authority will make that decision through its consultation. Clearly, not all businesses would necessarily agree with the decisions that are made by the local authority, but that would be the process.