Members of the Scottish Parliament (MSPs)

The Code of Conduct provides a set of principles and standards for Members of the Scottish Parliament.

Code of Conduct (6 May 2021)

Code of Conduct Guidance (21 October 2021)

Introduction

1. The Schedule to the Interests of Members of the Scottish Parliament Act 2006 (the Act) sets out the categories of registrable financial interests which a member must register. These are set out below with reference to the relevant provision in the Act and with explanatory notes designed to help members when registering their interests under any particular category. Members should refer to Section 1 of this Code for the general requirements in relation to registration.

Remuneration and related undertaking – Schedule, paragraph 2

A member has, or had, a registrable financial interest:

(A1) Where the circumstances are as described in sub-paragraph (1) or (1A).(1) Where a member receives, or has received, remuneration by virtue of —

(a) being employed;
(b) being self-employed;
(c) being the holder of an office;
(d) being a director of an undertaking;
(e) being a partner in a firm; or
(f) undertaking a trade, profession or vocation.

(1A) Where a member is, or was —

(a) a director in a related undertaking; or
(b) a partner in a firm, but does, or did, not receive remuneration by virtue of being such a director or partner.

(2) A member does not fall within sub-paragraph (1) solely by virtue of being, or of having been, a member, a member of the Scottish Executive or a junior Scottish Minister or holding or having held the office of Presiding Officer, deputy Presiding Officer or member of the Parliamentary corporation or of Convener, deputy Convener or member of a committee of the Parliament.

(3) Sub-paragraph (1) does not apply where the remuneration received from a person on a single, or on more than one, occasion during the current parliamentary session consists solely of expenses unless those expenses amount, or amount in aggregate, to more than the specified limit.

(4) The exception in sub-paragraph (3) applies even although the remuneration received from that person on another occasion, or on other occasions, during that session does not consist solely of expenses.

Key definitions:

“Remuneration” includes any salary, wage, share of profits, fee, expenses and other monetary benefit or benefit in kind (the Act, section 19(1)). This would include, for example, reimbursement of costs incurred and the provision by an employer of a company car or travelling expenses.

“a related undertaking” is a parent or subsidiary undertaking of an undertaking of which the member is a director and receives remuneration as a director as mentioned in sub-paragraph (1)(d);

“Undertaking” has the same meaning as in the Companies Act (see section 1161(1) of the Companies Act 2006) and means, in broad terms, (a) a body corporate or partnership; or (b) an unincorporated association carrying on a trade or business, with or without a view to a profit;

“Parent” and “subsidiary” undertakings have the same meaning as in section 1162 of the Companies Act 2006;

“specified limit” means 0.5% of a member’s salary (rounded down to the nearest £10) at the beginning of the current parliamentary session;

“current parliamentary session” means the parliamentary session which begins immediately after, or in which, the member is returned;

“prejudice test” an interest meets the prejudice test if, after taking into account all of the circumstances, that interest is reasonably considered to prejudice, or give the appearance of prejudicing the ability of the member to participate in a disinterested manner in any proceedings of the Parliament.

Remuneration and related undertaking

Remuneration

2. Remuneration received from the date of return as an MSP which falls into the categories (1)(a)-(f) and related undertakings which fall into categories (1A)(a) and (b) must be registered. Remuneration received solely as an MSP (i.e. MSPs’ salary and allowances) or solely as a result of holding the following offices is expressly excluded —

- a member of the Scottish Executive or a junior Scottish Minister

- Presiding Officer

- deputy Presiding Officer

- member of the Parliamentary corporation

- Convener or deputy Convener of a committee of the Parliament

- member of a committee of the Parliament.

3. Expenses, including those that represent reimbursement of costs incurred, fall within the definition of remuneration —

- Remuneration, consisting solely of expenses, which does not exceed the specified limit (0.5% of a member’s salary at the beginning of the current parliamentary session, rounded down to the nearest £10) is not registrable.

- Expenses received from a single source on a single occasion that exceed the specified limit are registrable.

- Expenses received from a single source, which in aggregate during a parliamentary session exceed the specified limit, are registrable.

4. Members should therefore keep a record of all expenses received from the date of the member’s return, whether or not these are registrable at the time, so that they are aware if the aggregate expenses, from a single source, exceed the threshold for registration.

5. Where a member receives expenses at the same time as receiving other remuneration (for example, a fee) from the same source these expenses are always registrable regardless of the sum involved.

6. Remuneration received prior to the date of return as an MSP must also be registered if it meets the prejudice test. In terms of section 3(2) of the Act, an interest meets the prejudice test if, after taking into account all the circumstances, that interest is reasonably considered to prejudice, or to give the appearance of prejudicing, the ability of the member to participate in a disinterested manner in any proceedings of the Parliament.

7. Remuneration (including expenses exceeding the specified limit) received as an MP at Westminster or as an MEP should be registered where there is an overlap in the holding of both offices; as should any allowances paid in relation to membership of the House of Lords or any other institution except the Scottish Parliament: for example, the Committee of the Regions.

8. When registering remuneration from employment, members must include the name of the employer, the employer’s principal business address (if not a private individual), the nature of its business and the position that they hold.

9. When registering remuneration from self-employment or a partnership, members must include the name and nature of the business or partnership. The principal business address of the partnership must also be given. If a member is self-employed and carries on the business from the member’s private address, that address need not be included.

10. When registering remuneration from being the holder of an office, members must provide the name of the organisation in which an office is held, its principal business address, the nature of its business and the position held. Such positions can be in private businesses or public sector organisations. Examples include being a director of a consultancy firm or being a member of an advisory board or committee.

11. When registering remuneration from a directorship, members must provide the name of the undertaking in which the directorship is held, its principal business address and the nature of its business.

12. Where registering remuneration from a trade, profession or vocation, members must provide any name under which the trade etc. is carried out and the regularity and nature of the activity. Where work is provided under contract to one particular person or body, it is suggested that the names of that person or body should be given (under the requirement for any relevant additional information). For example, a member who is contracted to write a series of newspaper articles should consider giving the name of the publication and the frequency of articles for which the member is paid as well as the remuneration itself.

13. One-off activities which members might undertake, such as speaking at a conference or writing a single newspaper article, do not constitute remuneration from a trade, profession or vocation even if the member receives a fee or expenses for doing so (although this could be registered under the voluntary category). However, if a member undertakes such an activity on a regular, remunerated basis, this may be considered remuneration from a trade, profession or vocation. There may be circumstances where a one off activity is registrable under another category (e.g. gifts) if a payment of money, or transfer of property, in return for that activity goes beyond normal commercial rates.

14. For the purposes of initial registration, remuneration must be registered under each category ((1)( a)-(f)) with reference to the gross amount per annum (or nearest estimate) that a member expects to receive from the date of return. That remuneration will then be expressed in that member’s entry in the Register as being remuneration falling within the following bands —

- up to £500

- between £501 - £1,000

- between £1,001 - £2,000

- between £2,001 - £3,000

- between £3,001 - £5,000

and thereafter in intervals of £5,000.

(Members may specify an exact figure, instead of indicating a bandwidth, if they wish.)

15. In the case of remuneration received prior to the date of return and to which the prejudice test applies, the remuneration received must be registered within the relevant band for each year in which it was received.

16. Where remuneration is being received but the member does not know the exact amount that will be received, the member must register remuneration on the basis of what the member expects to receive. Where this later proves to be inaccurate, the member is encouraged to amend the entry by lodging an appropriate amendment so that the remuneration is shown within the appropriate band. Paragraphs 41 and 42 of Section 1 of this Code provide further information on amending interests.

17. Members must also register any new remuneration for work undertaken after the date of return as a newly acquired interest.

18. Remuneration received on or after the date of a member’s return is registrable, even if the activity was undertaken in advance of them becoming a member. Under the terms of the Act the relevant date that the interest is acquired is the date of receipt of payment.

Late registrations

19. Members must take steps to register any remuneration that they have accidentally overlooked, or had not realised required to be registered, as soon as possible and in all cases, within seven days of becoming aware of it.

Ceased interests

20. A member may not cease an interest that consists of remuneration. Such interests will therefore remain on the register for the duration of the session.

21. Redundancy payments are registrable on receipt. Members are not required to register pensions. However, if a member wishes to, a pension may be registered voluntarily.

Related undertaking – non-remunerated directorships

22. Members are required to register any directorships which they hold, which are not remunerated, where the undertaking in which they hold a directorship is a parent or a subsidiary of an undertaking in which the member holds a remunerated directorship.

23. Members are required to register the name of the related subsidiary or parent undertaking, the nature of its business, its principal business address and its relationship to the other undertaking in which the member is a director and from which the member receives remuneration. The Interests Act defines parent undertakings or subsidiary undertakings by reference to the Companies Act 2006.

24. Any other unremunerated directorships which are not related in any way to a remunerated directorship do not require to be registered but they may be registered on a voluntary basis.

Partnerships – non-remunerated partners

25. Members are required to register being a partner in a firm where the member does not, or did not, receive remuneration by virtue of being such a partner. This could be where a member is a sleeping partner in a business or a business whose operating profits are wholly reinvested in the business. Members who are unremunerated partners in firms are required to register the name of the firm, its principal business address and the nature of its business.

Gifts – Schedule, paragraph 6

A member has a registrable interest:

(1) Where the circumstances are as described in sub-paragraph (2) or (3)

(2) Where a member or a company in which the member has a controlling interest or a partnership of which the member is a partner receives, or has received, a gift of heritable or moveable property or a gift of a benefit in kind and —

(a) in the case where the gift was received from a person on a single occasion, the value of that gift, at the date on which it was received, exceeds the specified limit; or
(b) in the case where gifts were received from that person on more than one occasion during the current parliamentary session, the aggregate value of those gifts, each valued at the date on which it was received, exceeds the specified limit; and, in either case,
(c) that gift or those gifts meet the prejudice test.

(3) Where a member or a company in which the member has a controlling interest or a partnership of which the member is a partner receives, or has received, a gift of heritable or moveable property or a gift of a benefit in kind and —

(a) in the case where the gift was received from a person on a single occasion, the value of that gift, at the date on which it was received, exceeds £1,500; or
(b) in the case where —
(i) the value of the gift, at the date on which it was received, exceeds £500 (but does not exceed £1,500); and
(ii) the aggregate value of the gift and any aggregable benefit or benefits, each valued at the date on which it was received, exceeds £1,500; and, in either case,
(c) that gift is —
(i) offered to the member; or
(ii) having been accepted, retained by the member, for use by or the benefit of the member in connection with the member’s political activities.

(4) Sub-paragraph (2) does not apply to the costs of travel and subsistence in connection with the member’s attendance at a conference or meeting where those costs are borne in whole or in part by —

(a) the organiser of that conference; or
(b) one of the other parties attending that meeting, as the case may be.

(5) Sub-paragraphs (2) and (3) do not apply to —

(a) any support (of any kind) provided by the services of a volunteer which are provided in that volunteer’s own time and free of charge; or
(b) a donation (of any kind) which is intended by the donor to be used for the purposes of meeting—
(i) the election expenses of the member in relation to the election at which that member was returned as a member of the Scottish Parliament; or
(ii) the election expenses of the member in relation to any UK parliamentary election at which that member stands as a candidate, but this exemption ceases to apply if the donation is not used for its intended purpose by the expiry of the 35th day after the election result is declared

(6) Sub-paragraph (3) does not apply to a gift or other benefit which the member has returned (or repaid) or sent to the Electoral Commission in accordance with sections 56 and 57 of the Political Parties, Elections and Referendums Act 2000 (c.41) (as applied by paragraph 8 of Schedule 7 to that Act)

(7) The reference in sub-paragraph (3)(b)(ii) to a benefit being valued at the date on which it was received is, in the case of a controlled transaction, a reference to its being valued at the date on which it was entered into.

(8) For the purposes of this paragraph —

“aggregable benefit” means any of the following that is accepted by the member from the same person as gave the gift and in the same calendar year as the member accepted it —

(a) any other gift of a kind to which sub-paragraph (3)(b)(i) and (c) applies;
(b) any remuneration that is registrable by virtue of paragraph 2, and has a value exceeding £500 (but not exceeding £1,500) and consisting of—
(i) the payment to the member of any expenses incurred directly or indirectly by the member in connection with any of the member’s political activities; or
(ii) a benefit in kind deriving from the payment by a person (other than the member) to a third party of expenses attributable to the member in connection with those activities;
(c) any controlled transaction (construed in accordance with paragraph 6A) having a value not exceeding £1,500;
(d) any overseas political visit (within the meaning given by sub-paragraph (4), as read with sub-paragraph (5), of paragraph 7) having a value exceeding £500 (but not exceeding £1,500);
“candidate” has the same meaning as in section 118A, as read with section 90ZA(5) of the Representation of the People Act 1983 (c.2);
“controlling interest” means, in relation to a company, shares carrying in the aggregate more than half of the voting rights exercisable at general meetings of the company;
“current parliamentary session” means the parliamentary session which begins immediately after, or in which, the member is returned;
“election expenses”, in relation to a member, has the same meaning for the purposes of—
(a) sub-paragraph (5)(b)(i) as “election expenses” has in relation to a candidate in the order under section 12 of the 1998 Act which is in force for the purposes of the election at which the member was returned; and
(b) sub-paragraph (5)(b)(ii) as “election expenses” has in section 90ZA of the Representation of the People Act 1983 (c.2);
“political activities”, in relation to a member, means the political activities of the member as such or as a member of a registered political party or both;
“specified limit” means 0.5% of a member’s salary (rounded down to the nearest £10) at the beginning of the current parliamentary session.”.

Gifts

26. There are two categories of gift which are registrable.

27. Firstly, any gift with a value on the date the gift is made which exceeds 0.5% of a member’s salary at the beginning of the current parliamentary session (rounded down to the nearest £10) must be registered where the gift also meets the prejudice test.

28. If over the course of a session a member receives a number of gifts from a single source, each of which is below the threshold but which cumulatively exceed it, the member is required to register them.

29. Secondly, members must register any gift (or sponsorship within the meaning of PPERA schedule 7, para 3) over the value of £1,500 for political activities (as a member of the Parliament or a registered political party or both). A gift is considered to be for political activities where the gift is offered to the member for their use or benefit in connection with their political activities or is retained by the member for these purposes, or both. In assessing whether a gift is for a member’s use or benefit in connection with their political activities, regard is had to the intent of the donor in offering it and the intent of the member in retaining it. The prejudice test does not apply to this category of gift.

30. Political activities of a party member include promoting or procuring the election of any person to any position in, or to any committee of, the party in question, promoting or procuring the selection of any person as the party’s candidate for election to a relevant elective office; and promoting or developing policies with a view to their adoption by the party. For further information on whether a donation is for political activities, members should consult the guidance on this Code, or seek advice from the Standards Clerks

31. Gifts received for political activities (valued above £500) from the same source in the course of the calendar year, which amount to over £1,500 when aggregated with certain other benefits, must be registered. This includes any other gift, overseas visit, remuneration received as expenses or a loan, credit facility or other controlled transaction where these are for political activities and fall within certain value ranges. Members should keep track of gifts or benefits from the same source which are for political activities and contact the Standards Clerks for advice where they are in any doubt about these provisions.

32. A gift can be any tangible item such as glassware or jewellery, to gifts of money or residential property and other benefits such as hospitality, or tickets to sporting and cultural events. The category covers benefits such as relief from indebtedness, loan concessions, or provision of property, services or facilities at a cost below that generally charged to members of the public. It also includes money spent by a third party in paying expenses incurred directly or indirectly by a member (so long as it does not amount to remuneration for work done under the remuneration category).

33. The category covers gifts received directly by a member and gifts received by any company in which a member has a controlling interest, or by a partnership of which the member is a partner. It covers gifts received in a member’s capacity as an MSP. Gifts received by members in a private capacity are registrable under the first category of interest (i.e. where the gift is over £320 (either singly or cumulatively) and meets the prejudice test). Gifts to spouses and cohabitees are not registrable.

Financial and material support

34. Under the first category of gift, a member who receives any financial or material support as a member, the value of which exceeds £320, must register this as a gift where the prejudice test is met. Under the second category of gift, a member who receives any financial or material support for political activities, the value of which exceeds £1,500 either singly or in aggregation, must register the gift. The prejudice test does not apply to this second category of gift. Donations received by a member from a constituency party may fall within the gifts category.

35. Examples of material support include the provision of services of a research assistant, secretary or other member of staff whose salary, in whole or in part, is met by a person other than the member. (See volunteer services at paragraph 39, below).

36. Members must register the monetary value of the support which is the gross cost to the person providing the material support. In the case of payment of salary cost this should be calculated on the basis of pre-tax income including the cost of providing national insurance and other benefits.

37. When registering material support a member should provide the name of the provider, their principal business address (if not an individual) and the nature of its business (if not an individual). Members may also wish to detail any conditions attached to the support, such as the duration of it and how it is paid for (whether or not it is or was provided directly to the member, or is paid directly to another person providing the service to the member).

Travel and subsistence

38. Unless the gift is over the value of £1,500 (singly or cumulatively) and for political activities, members are not required to register the costs of travel and subsistence in connection with attendance at a conference or meeting if those costs are borne in whole or in part by the organiser of the conference or by one of the other parties attending the meeting. However, attendance at an overseas conference or meeting may require to be registered as an overseas visit. It is also possible that expenses for attendance at a meeting or conference could fall into the remuneration category.

Volunteer services

39. Support from a volunteer who provides a service in their own time free of charge is exempt from the requirement to register in the gifts category.

Election expenses

40. Members are not required to register donations towards the member’s election expenses even if they exceed the gifts thresholds as long as —

(a) the donor intended them to be used to meet the election expenses of the member in relation to the member’s election to the Scottish Parliament; or the election expenses of the member in relation to any UK Parliamentary election at which the member stands as a candidate. This exemption only applies if the expenses fall to be included in the candidate spending return for the election in question.

and

(b) they have been spent on the intended purpose by the end of the 35th day after the result of the election was declared.

41. However, any donations which are unspent on the election in question by the expiry of the 35th day after the election result is declared (the same timeframe that is allowed for lodging election returns) must be registered under the first category of gift, if they exceed the gifts threshold of £320 and meet the prejudice test. Members acquire a registrable interest on the expiry of the 35th day after the election result is declared and have 30 days from then to register the interest as set out in section 5(2) of the Act.

42. Expenses acquired by a member before they are returned are not registrable under PPERA.

43. In recording election expenses and considering whether the exemption from registration applies, therefore, members need to be clear —

(a) whether a particular donation was intended by the donor to be used towards those election expenses (rather than for example being a general donation to the local party); and
(b) whether the donation was spent on costs associated with that election before the expiry of the 35th day after the election.

44. Should there be any complaint about a member’s failure to register election expenses, the member would need to be able to demonstrate that the donation had been spent on its intended purpose within the deadline specified.

45. Certain elections may take place close to the end of the parliamentary session. The period of 35 days after the election result is declared, during which the donation is potentially exempt, could then run into the dissolution period and so the donation would not require to be registered during that session even if it was not used for its intended purpose by the expiry of the 35th day. However, returning members may consider that such donations meet the prejudice test and so should be registered in the following parliamentary session, regardless of whether the member still has the donation by that time.

Donations from impermissible sources

46. PPERA requires that members only accept donations over £500 for political activities from a permissible source (see section 54 of, and paragraphs 6 to 9 of Schedule 7 to, PPERA). If the donation is not from a permissible source it must be returned to the donor or forwarded to the Electoral Commission where the donor cannot be identified (see sections 56 and 57 of PPERA). Members are not required to register any gift or benefit that is returned to the donor or forwarded to the Electoral Commission in these circumstances under the political activities sub-category. However, members are required to report impermissible donations to the Electoral Commission even if they have been returned. Further advice can be obtained from the Electoral Commission on the permissibility of donations.

47. Members would still be required to register donations returned to the donor under paragraph 6(2) of the schedule (i.e. under the first category of gift – over £320). As outlined above, the prejudice test would apply to this category of gift.

Registering a gift

48. In lodging a written statement in relation to a gift, the member must provide details of the nature of and estimated monetary value of the gift and the date it was received. A member must also indicate whether the gift was received directly or was given to a company or partnership in which the member has a controlling interest or is a partner. Members must additionally provide the donor’s name, principal business address and the nature of the donor’s business (if not a private individual).

49. In addition, members may register in the voluntary category any gift which does not meet the registration requirements, if they believe that disclosure would be in the public interest. Members should be aware of the need for caution in accepting gifts and other benefits.

50. Where a member registers a gift received before the date that the member was returned, which the member considers meets the prejudice test, the threshold for registration is based on a member’s salary at the start of the parliamentary session in which the gift would be registered (not the session in which the gift was received). In other words, a single threshold applies to all gifts included in the register in a particular session. Where a gift received prior to the date of return would otherwise be registrable because it was for political activities (but for no other reason) then there is no need to register it. PPERA does not require registration of “political” gifts acquired before the date of return.

Late registrations

51. Members must also take steps to register any gifts that they have accidentally overlooked, or had not realised required to be registered, as soon as possible and in all cases, within seven days of becoming aware of the requirement to register.

Loans, credit facilities, etc. - Schedule, paragraphs 6A and 6B

A member has a registrable interest:

6A(1) Where a member enters into a controlled transaction and—

(a) the value of the transaction is more than £1,500; or
(b) if not, the aggregate value of it and any aggregable benefit or benefits exceeds £1,500.

(2) Sub-paragraphs (3) to (10) define and provide further about controlled transactions.

(3) An agreement between the member and another person by which that person lends money to the member is a controlled transaction if the use condition (see sub-paragraph (9)) is satisfied.

(4) An agreement between the member and another person by which that person provides a credit facility to the member is a controlled transaction if the use condition (see sub-paragraph (9)) is satisfied.

(5) A credit facility is an agreement whereby a member is enabled to receive from time to time from another party to the agreement a loan of money not exceeding such amount (taking account of any repayments made by the member) as is specified in or determined in accordance with the agreement.

(6) Where—

(a) the member and another person enter into a controlled transaction of a kind mentioned in sub-paragraph (3) or (4) or a transaction under which any property, services or facilities are provided for the use or benefit of the member (including the services of any person);
(b) the other person also enters into an arrangement where a third person gives any form of security for a sum owed to the other person by the member under a transaction mentioned in paragraph (a); and
(c) the use condition (see sub-paragraph (9)) is satisfied, the arrangement is a controlled transaction.

(7) But the agreement or arrangement is not a controlled transaction—

(a) to the extent that, in accordance with any enactment, a payment made in pursuance of the agreement or arrangement falls to be included in a return as to election expenses in respect of a candidate or candidates at a particular election;
(b) to the extent that it is entered into by the member and a person—
(i) in connection with the provision of goods or services to the member; and
(ii) in the normal course of that person’s trade or business and on its normal terms;
(c) if its value does not exceed £500; or
(d) despite section 3(1)(b), it was entered into by the person who is the member before the date the member was returned.

(8) For the purposes of sections 3 and 5 and sub-paragraph (1) of this paragraph, if—

(a) the value of a controlled transaction as first entered into is such that it is not registrable; but
(b) the terms of the transaction are subsequently varied in such a way that it becomes registrable, the member is to be treated as having entered into a registrable transaction on the date when the variation takes effect.

(9) The use condition is that the member intends, at the time the member enters into the loan or credit facility agreement or the transaction second mentioned in sub-paragraph (6)(a), to use any money or benefit obtained in consequence of it in connection with the member’s political activities (either as a member or as a member of a registered political party or both).

(10) For the purposes of sub-paragraph (9), it is immaterial that only part of the money or benefit is intended to be used in connection with the member’s political activities.

(11) In sub-paragraph (1)(b), “aggregable benefit” means any of the following that is accepted by the member from the same person, being a party to the controlled transaction, and in the same calendar year as the member accepted the controlled transaction—

(a) any other controlled transaction having a value not exceeding £1,500;
(b) any remuneration that is registrable by virtue of paragraph 2, and has a value exceeding £500 (but not exceeding £1,500) and consisting of—
(i) the payment to the member of expenses incurred directly or indirectly by the member in connection with the member’s political activities (as a member or as a member of a registered political party or both); or
(ii) a benefit in kind deriving from the payment by a person (other than the member) to a third party of expenses attributable to the member in connection with those activities;
(c) any gift to which paragraph 6(3)(b)(i) and (c) applies;
(d) any overseas political visit (within the meaning given by sub-paragraph (4), as read with sub-paragraph (5), of paragraph 7) having a value exceeding £500 (but not exceeding £1,500).

Value of loans, credit facilities etc.

6B(1) The value of a controlled transaction which is a loan is the value of the total amount to be lent under the loan agreement.

(2) The value of a controlled transaction which is a credit facility is the maximum amount which may be borrowed under the agreement for the facility.

(3) The value of a controlled transaction which is an arrangement by which any form of security is given is the contingent liability under the security provided.

(4) For the purposes of sub-paragraphs (1) and (2), no account is to be taken of the effect of any provision in a loan agreement or an agreement for a credit facility at the time it is entered into which enables outstanding interest to be added to any sum for the time being owed in respect of the loan or credit facility, whether or not any such interest has been so added.”

Reporting and registration of changes to controlled transactions, section 8 of the Act.

(1) For the purposes of this section, there is a change to a registered interest that is a controlled transaction if —

(a) another person becomes party to the transaction (whether in place of or in addition to any existing party to it);
(b) there is a change to anything about which information was (or should have been) provided by the member in the written statement lodged by the member when registering the transaction;
(c) the transaction comes to an end.

(2) The reference in subsection (1)(b) to information provided is a reference to information —

(a) about or relating to the transaction; and
(b) provided in accordance with a determination under section 4(2).

(3) For the purposes of subsection (1)(c), a loan comes to an end if —

(a) the whole debt (or all the remaining debt) is repaid;
(b) the creditor releases the whole debt (or all the remaining debt).

(4) A member who has registered a controlled transaction shall notify the Clerk of any change to the transaction.

(5) A member shall comply with subsection (4) by lodging a written notice with the Clerk not later than the last day of the period of 30 days beginning with the day on which the change takes effect.

(6) A written notice shall —

(a) be in such form; and
(b) contain such information about the change or relating to it, as the Parliament may determine.

(7) Within 30 days after a member has lodged a written notice in accordance with this section, the Clerk shall —

(a) amend the entry relating to that member in the register so as to record the change and the date when it took effect; and
(b) send a copy of the amended entry to the member.

Loans, credit facilities, etc.

52. Under section 8A of the 2006 Act, members are required to register loans, credit facilities and connected transactions (‘controlled transactions’) which are over the value of £1,500 and for political activities. For example, where a member enters into a credit card agreement with a credit limit over the value of £1,500 with the intention of using it wholly or partly for their political activities, this would be registrable. Members must register such controlled transactions even if only part of the money or benefit obtained is intended to be used in connection with the member’s political activities.

53. Members must also register loans, credit facilities and connected transactions over the value of £500 for political activities which, when aggregated during the course of a calendar year with other such income or benefits from the same source, exceed £1,500. This includes gifts, remuneration received as expenses, overseas visits or other loans, credit facilities and connected transactions where these are for political activities and amount to over £500 but do not exceed £1,500. Members should keep track of any loans, credit facilities or connected transactions and other benefits over £500 for political activities and contact the Standards Clerks for advice when there may be an aggregated registrable interest.

54. Members must register transactions over £1,500 and for political activities that are connected to a loan or credit facility obtained by a member (‘connected transactions’). A connected transaction is one under which a third party gives security in relation to a sum owed by the member under a loan or credit agreement which is itself a controlled transaction (or for the provision of property, services or facilities to the member for political activities). For example, where a third person gives a personal guarantee to a bank in respect of a loan or credit facility over the value of £1,500 provided to the member for political activities.

55. There are certain financial arrangements which members do not have to register. They are —

- payments which fall to be included in a candidate electoral return for an election;
- trade credit (given on normal rather than preferential terms);
- loans, credit facilities or connected transactions which do not exceed £500;
- loans, credit facilities or connected transactions entered into before the member was returned as a member.

56. Members may enter into a controlled transaction which is not registrable but which is subsequently varied so as to become registrable (either singly or when aggregated with other aggregable benefits). For example, the terms of a loan agreement may be varied to take its value above £1,500. In such circumstances, the date on which the controlled transaction is considered to be entered into is the date on which that change takes effect.

57. Members must indicate the value of the controlled transaction when registering it. In the case of a loan, the value is the value of the total amount to be lent under the loan agreement. For a credit facility, the value is the maximum amount which may be borrowed under the agreement for the facility. Where a third party gives security to a member for a controlled transaction (i.e. where it is a connected transaction), the value is the contingent liability under the security provided. The value of any interest added to the total of a loan or credit facility should not be taken into account when calculating its value.

58. Members must notify the Clerk of any changes to a registered controlled transaction within 30 days of the date on which the change takes effect. Such changes include changes to the name and address of the authorised participants to the transaction, its nature and its value. They also include another person becoming party to the transaction, where there is a change to anything about which information was (or should have been) provided by the member in the written statement lodged by the member when registering the transaction or where the transaction comes to an end.

Overseas Visits – Schedule, paragraph 7

A member has a registrable interest:

(1) Where the circumstances are as described in sub-paragraph (2) or (4).

(2) Where the member makes, or has made, a visit outside the United Kingdom and that visit meets the prejudice test.

(3) Sub-paragraph (2) does not apply to a visit the travel and other costs of which—

(a) are wholly met—
(i) by the member;
(ii) by the member’s spouse, civil partner or cohabitant;
(iii) by the member’s mother, father, son or daughter;
(iv) by the Parliamentary corporation; or
(v) out of the Scottish Consolidated Fund; or
(b) were approved prior to the visit by the Parliamentary corporation.

(4) Where a member makes, or has made, a visit outside the United Kingdom in connection with any of the member’s political activities (as a member or as a member of a registered political party or both) (an “overseas political visit”) and—

(a) the costs of the visit exceed £1,500; or
(b) those costs exceed £500 (but do not exceed £1,500) and the aggregate value of them and any aggregable benefit or benefits exceeds £1,500.

(5) Sub-paragraph (4) does not apply to a visit the travel and other costs of which—

(a) are wholly met—
(i) by the member;
(ii) by the Parliamentary corporation; or
(iii) out of the Scottish Consolidated Fund; or
(b) were approved prior to the visit by the Parliamentary corporation.

(6) In sub-paragraph (4)(b), “aggregable benefit” means any of the following that is accepted by the member from the same person as met the costs of the visit and in the same calendar year as the member accepted it—

(a) any other overseas political visit having a value exceeding £500 (but not exceeding £1,500);
(b) any remuneration that is registrable by virtue of paragraph 2, having such a value and consisting of—
(i) the payment to the member of any expenses incurred directly or indirectly by the member in connection with the member’s political activities (as a member or as a member of a registered political party or both);
(ii) a benefit in kind deriving from the payment by a person (other than the member) to a third party of expenses attributable to the member in connection with those activities;
(c) any gift to which paragraph 6(3)(b)(i) and (c) applies;
(d) any controlled transaction (construed in accordance with paragraph 6A) having a value not exceeding £1,500.”

Overseas visits

59. A member is required to register and provide details of a visit outside the United Kingdom in certain circumstances. Firstly, members must register overseas visits where the visit meets the prejudice test. Secondly, members must register overseas visits for political activities, over the value of £1,500 (the prejudice test does not apply to such visits).

60. Members must register overseas visits for political activities over the value of £500 which, when aggregated with other such income or benefits from the same source within the same calendar year and also for political activities (including other overseas visits, gifts, remuneration received as expenses or controlled transactions), amount to over £1,500.

61. For the purposes of registration, the date upon which a visit becomes registrable is the first day of any such visit. Under the terms of the Act, members have 30 days beginning with that date to lodge a written statement with the clerks reflecting this interest.

62. Certain overseas visits are excluded from the requirement to register. These are visits, the travel and other costs of which are wholly met —

- by the member;
- by the Scottish Parliamentary Corporate Body (SPCB); or
- out of the Scottish Consolidated Fund (for example, Ministerial visits).

63. Members are not required to register overseas visits, the travel and other costs of which are wholly met —

- by the member’s spouse, civil partner or cohabitant;
- by the member’s mother, father, son or daughter
unless the visit is over the value of £1,500 (either singly or in aggregate) and for political activities, in which case members must register the overseas visit.

64. There is also no need to register visits the costs of which were approved in advance by the SPCB.

65. There may be occasions when fees or expenses for work undertaken overseas fall into the remuneration rather than overseas visits category. Equally, certain overseas visits and related costs may fall within the gifts category. Members are advised to seek advice from the Standards Clerks if they are uncertain about which category an interest should be registered in.

66. Visits within the United Kingdom and the provision of hospitality in the United Kingdom are not covered by this provision although members may register these on a voluntary basis if they believe that disclosure would be in the public interest. Depending on the value, and subject to meeting the prejudice test or the visit being for political activities, UK visits may also fall within the gifts category. Similarly hospitality provided abroad not directly linked to the cost of the visit itself does not need to be registered under the overseas visits category. Again, however, members need to take account of the value of that hospitality as it may require to be registered as a gift.

67. Members should note that committee travel outwith the UK may need to be registered. Members are advised to seek advice from the relevant committee clerk regarding prior approval by the SPCB. Members may also consult the Standards Clerks for further advice on seeking SPCB approval for certain visits overseas.

68. Where registration is required, members should provide details of the dates, destination and purpose of the visit along with the name of any individual, business or organisation which met any of the costs. Members must also provide the principal business address of the business or organisation which met the costs of the trip and the nature of the business (but not that of a private individual). Members must provide details of the cost of the visit, ideally split between travel and expenses. Costs can be provided in the currency in which they were incurred, however members may also wish to include the estimated value in sterling and the date of the currency conversion upon which this estimate is based.

69. Members must also take steps to register any overseas visits that they have accidentally overlooked, or had not realised required to be registered, as soon as possible and in all cases, within seven days of becoming aware of it.

Heritable property – Schedule, paragraph 8

A member has a registrable interest:

(1) Where a member owns or holds, or has owned or held, any heritable property and sub-paragraph (2) applies.

(2) This sub-paragraph applies where either—

(a) the market value of the heritable property, at the relevant date, exceeds the specified limit; or
(b) any income is received from the heritable property during the twelve months prior to the relevant date.

(3) Sub-paragraph (1) applies to heritable property which a member owns or holds, or has owned or held—

(a) solely in the member’s name;
(b) jointly with any other person or body; or
(c) as a trustee, whether or not jointly with other trustees, where the member has an interest as a beneficiary of the trust.

(4) Sub-paragraph (1) does not apply to heritable property—

(a) which is used as a residential home by the member or the member's spouse, civil partner or cohabitant
(b) which was used as a residential home by the member or the member's spouse, civil partner or cohabitant but which, for a period of not more than 12 months, is or was unoccupied and for sale; or
(c) which forms part of the assets of a partnership and any income from that partnership is, or forms part of, the remuneration registered under paragraph 2 of this Schedule.

(5) Where a member has ceased to own or hold any heritable property before the date on which the member was returned as a member, the relevant date is the date when the heritable property ceased to be so owned or held.

(6) Where a member owned or held any heritable property at the date on which the member was returned as a member, the relevant date is—

(a) that date; and
(b) the 5th April immediately following that date and in each succeeding year, where the heritable property continues to be so owned or held on that 5th April.

(7) Where a member becomes the owner of or acquires any heritable property after the date on which that member was returned as a member, the relevant date is—

(a) the date on which the member became the owner of or acquired that heritable property; and
(b) the 5th April immediately following that date and in each succeeding year, where the heritable property continues to be so owned or held on that 5th April.

Key definitions:

“Heritable property” includes any right or interest in heritable property whether in Scotland or elsewhere. It includes residential or other similar property, land or any right or interest in or over land;

“Spouse” in relation to a member does not include a former spouse or a spouse who is living separately and apart from the member where the separation is likely to be permanent;

“Civil partner” in relation to a member does not include a former civil partner or a civil partner who is living separately and apart from the member where the separation is likely to be permanent;

“Cohabitant” means either member of a couple consisting of—

(a) a man and a woman who are living together as if they were husband and wife; or
(b) two persons of the same sex who are living together as if they were civil partners;

“current parliamentary session” means the parliamentary session which begins immediately after, or in which, the member is returned; and

“specified limit” means 50% of a member’s salary (rounded down to the nearest £10) at the beginning of the current parliamentary session.

Heritable property

70. A heritable property which exceeds either the market value threshold or from which income has been received by the member or by anyone else must be registered. Members are required to register any interest in heritable property where the property’s market value exceeds 50% of the member’s salary at the start of the current parliamentary session (rounded down to the nearest £10). Members must also register heritable property which yields any income, for example from rent, in the twelve months prior to the relevant date. Members do not require to register interests in heritable property which do not exceed the market value threshold or generate income; however, members may choose to register these in the voluntary category if they wish.

71. Heritable property may be situated in any part of the world. The issue of the “relevant date” is particularly important in understanding when an interest in property requires to be registered. The relevant date is the date that the member is returned for property owned at that date; the date of acquisition for a newly acquired property; or the date of disposal when a property is sold before the member is returned. In the first two cases each 5th April after the initial relevant date is also a relevant date.

72. In relation to income-based registration, registration is required where any income is yielded in the twelve months prior to the date that the member is returned (and each following 5th April) or the date of acquisition (and each following 5th April) or the date of disposal as the case may be. An acquired rental property must therefore be registered (within 30 days) on the basis of income received in the past twelve months even where the income prior to acquisition has not been paid to the member but to a previous owner.

73. A member registering an existing property at the date that the member is returned must estimate its market value at that date and assess whether that figure exceeds 50% of a member’s salary (rounded down to the nearest £10) at the beginning of the current parliamentary session. If it does, the property must be registered. The member must then re-estimate the market value on each subsequent 5th April that the member continues to own or hold the property. If the value continues to exceed 50% of the member’s salary (as at the start of the parliamentary session) then the property should continue to be registered. If it does not, then the member may identify the interest as a ceased interest and inform the Standards Clerks.

74. Where a member disposes of a registrable property (prior to the date of return as a member), the relevant amounts for the purposes of calculation are: market value at the date of sale measured against the amount of a member’s salary at the start of the current parliamentary session; and/or any income from the property in the twelve months prior to sale. Similarly for registrable property acquired after the date of return as a member, the requirement for registration should be considered on the basis of market value at acquisition and on each subsequent 5th April that the member owns or holds the property against salary at the start of the parliamentary session.

75. The requirement to register does not apply to heritable property used as a residence by the member or the member’s spouse, civil partner or cohabitant or to heritable property which was such a residential home, but (for not more than twelve months) is or was unoccupied and for sale. A member also does not have to register property which forms part of the assets of a partnership where any income received by the member from that partnership is already registered as remuneration under paragraph 2 of the Schedule to the Act.

76. There may also be circumstances where income received from a rental property could fall within the remuneration category if it is received by a member who lets property in connection with self-employment or a trade, profession or vocation. Equally, there may be circumstances in which heritable property could fall within the gifts category. Members are advised to seek advice from the Standards Clerks if they are uncertain in which category an interest should be registered.

77. The requirement to register heritable property applies not just to property that a member owns in their own name but to property in joint names (such as with a spouse or business partner) and to property held as a trustee but only where the member has a beneficial interest in the income or assets of the relevant trust.

78. For all properties that require to be registered, members are required to indicate the location of each property (for example, by local authority area if in Scotland) and the type of property (for example, flat, house, commercial property, industrial or agricultural). Members do not have to provide the date they acquired the property if this was prior to the date the member was returned but must provide relevant dates where a property is disposed of or acquired during the session.

79. For properties registrable on the basis of market value, members must provide an estimate of market value for each property (within the bandwidths determined by the Parliament) at whichever relevant date applies. For properties registrable on the basis of income, members must provide an estimate of gross income (within the bandwidths determined by the Parliament) in the twelve months prior to whichever relevant date applies. Where a property meets both tests then both the market value and income details should be provided

80. Registration is based on the full market value or income irrespective of whether the member owns the property independently or with another person or irrespective of the member’s equity share in the property once a mortgage is taken into account or the costs of disposal. Members may provide additional details in connection with the entry in relation to these matters if they wish to do so.

81. Where a member registers an interest in heritable property which the member no longer had on the date that the member was returned but which meets the prejudice test, the relevant date is the date that the interest ceased to be held. In these circumstances the threshold for registration should relate to the salary of a member at the start of the parliamentary session in which the member is considering registration.

82. Members must also take steps to register any heritable property that they have accidentally overlooked, or had not realised required to be registered, as soon as possible and in all cases, within seven days of becoming aware of it. Members should refer to the guidance on late registration.

Interest in shares– Schedule, paragraph 9

A member has a registrable interest:

(1) Where a member has, or had, an interest in shares, whether that interest is, or was, held by the member or by a relevant person, and sub-paragraph (2) applies.

(2) This sub-paragraph applies where either—

(a) the nominal value of the shares at the relevant date is, or was, greater than 1% of the total nominal value of the issued share capital of the company or other body; or
(b) the market value of the shares at the relevant date exceeds, or exceeded, the specified limit.

(3) Sub-paragraph (1) applies to an interest in shares, whether that interest is, or was, held by a member (or a relevant person)—

(a) solely in the name of the member (or relevant person);
(b) jointly with any other person or body; or
(c) as a trustee, whether or not jointly with other trustees where the member has an interest as a beneficiary of the trust.

(4) Sub-paragraph (1) does not apply to an interest in shares which forms part of the assets of a partnership and any income from that partnership is, or forms part of, remuneration registered under paragraph 2 of this Schedule.

(5) Where a member has ceased to have an interest in shares before the date on which the member was returned as a member, the relevant date is the date when the interest in such shares ceased to be so held.

(6) Where a member had an interest in shares at the date on which the member was returned as a member, the relevant date is—

(a) that date; and
(b) the 5th April immediately following that date and in each succeeding year, where the interest is retained on that 5th April.

(7) Where a member acquires an interest in shares after the date on which the member was returned as a member, the relevant date is—

(a) the date on which the interest in shares was acquired; and
(b) the 5th April immediately following that date and in each succeeding year, where the interest is retained on that 5th April.

Key definitions:

“current parliamentary session” means the parliamentary session which begins immediately after, or in which, the member is returned;

an “interest in shares” means an interest in shares comprised in the share capital of a company or other body;

“relevant person” is a person who is subject to the control or direction of a member in respect of an interest in shares;

“specified limit” means 50% of a member’s salary (rounded down to the nearest £10) at the beginning of the current parliamentary session.

Interest in Shares

83. A member is required to register an interest in shares which the member or a “relevant person” (meaning a person subject to the control or direction of the member in respect of that interest) has or had. A relevant person can be a relative (such as a spouse or civil partner) or some other individual or body. Such a person may nominally own or hold the shares but can be said to be controlled or directed where, for example, only the member may authorise disposal of the shares or where the member ultimately benefits from any income or gain on disposal.

84. Registration is required where the nominal value of the shares at the relevant date is or was greater than 1% of the total nominal value of the issued share capital of the company or other body; or where the market value of the shares at the relevant date exceeds 50% of a member’s salary at the start of the current parliamentary session (rounded down to the nearest £10). Members are not required to register interests in shares which do not exceed either of the value thresholds; however, members may register these in the voluntary category if they wish.

85. Calculation of the relevant date for shares works in the same way as for heritable property (above).

86. A member considering whether registration of an existing share-holding at the date of return is required on the basis of market value must ascertain its value at that date. If it exceeds 50% of a member’s salary at the start of the current parliamentary session the shareholding must be registered. Likewise, a member considering whether registration of an existing share-holding at the date of return is required on the basis of the nominal value of the shares must ascertain whether this value is greater than 1% of the total nominal value of the issued share capital of the company or other body at that date. In either case the member must then obtain a new valuation on each subsequent 5th April that the member continues to have the interest in shares. If the value continues to exceed the relevant threshold, then the shares should continue to be registered. If they fall under that threshold then the member may have the interest removed from the Register as a ceased interest. Members who have a portfolio of shares must continue to track the value of shares as at each relevant date to ensure that all holdings continue to fall under the threshold for registration. Where a shareholding later exceeds that threshold, the share-holding must be registered as if it was an interest acquired after the date of the member’s return and on the relevant date on which the value exceeded the threshold.

87. As with the Gifts and Heritable Property categories, a member may be required to register interests in shares disposed of before being returned as an MSP, if the member considers that the prejudice test is met. In these circumstances the threshold for registration relates to the salary of a member at the start of the parliamentary session in which the member is considering registration.

88. Where a member disposes of shares before being returned but the prejudice test applies, the market or nominal value for the purpose of registration is the market or nominal value at the date of sale. Similarly, for shares newly acquired after the date of return, registration depends either on the nominal value on acquisition or the market value at acquisition against member’s salary at the start of the current parliamentary session and the nominal value or market value against this salary on each subsequent 5th April that the member continues to have the interest in shares.

89. A member does not have to register shares which form part of the assets of a partnership where any income received by the member from that partnership is already registered as remuneration.

90. There may also be circumstances in which interests in shares could fall within the gifts category. Members are advised to seek advice from the Standards Clerks if they are uncertain in which category an interest should be registered.

91. The requirement to register shares applies not just to shares that a member owns in their own name but to shareholdings in joint names (such as with a spouse or business partner) and to shareholdings held as a trustee but only where the member has a beneficial interest in the income or assets of the relevant trust.

92. When registering shares, members are required to provide details of the type of shares, the name of the company in which the shares are held, the company’s business address and the nature of its business. Members do not have to provide the date of acquisition of shares held at the date of return but must provide dates where the shares have been disposed of or acquired as the case may be during the parliamentary session.

93. For shares registered on the basis of market value, members must provide a valuation on the relevant date. For shares registered on the basis of a proportion of nominal value, members must provide the percentage of the issued share capital of the company that the member holds. Where shares could be registered on the basis of both market value and nominal value the market value should also be provided as well as the percentage of overall share capital.

94. Shares in investment trusts are registrable if they meet the conditions outlined above. Members are not required to register units held in unit trusts. Members are not required to register investments that would not be considered to be part of a share portfolio, such as cash savings, cash ISAs, government bonds (gilts) and corporate bonds. If a member wishes to, these holdings may be registered in the voluntary category.

95. Members must also take steps to register any interest in shares that they have accidentally overlooked, or had not realised required to be registered, as soon as possible and in all cases, within seven days of becoming aware of it. Members should refer to the guidance on late registration.

Responsibility of the Member

96. Responsibility for ensuring compliance with the requirements of the Act for registration of interests lies with the individual member. If a member is uncertain about how the rules apply, the Standards Clerks may be asked for advice. A member may also choose to consult a personal legal adviser and, on detailed financial and commercial matters, a member may wish to seek advice from other relevant professionals. Failure to comply with the requirements of registration will constitute a breach of the requirements of the Act and may be a criminal offence. It could also lead to sanctions being imposed on a member by the Parliament.