Commentary on Provisions Part 1 – Scottish Aggregates Tax Repayments Section 13: Repayments of overpaid tax
50.This section of the Act amends section 108 of the 2014 Act, which relates to situations where subordinate legislation intended to change the tax basis of a devolved tax by means of the provisional affirmative procedure applies for a period but is not subsequently approved by the Scottish Parliament within 28 days of it being laid.
51.When such an instrument is made, the changes to the tax basis set out in it (which in the case of regulations under section 12 of the Act might be changes to the tax rate for aggregates tax) can apply immediately, so taxpayers’ liability will change as soon as the instrument is made: but if the proposed changes are not approved by Parliament within 28 days, then the instrument falls. Section 13 of the Act amends section 108 so that in such a situation, a taxpayer can make a claim for repayment of the amount of additional aggregates tax paid during the period when the instrument was in force.
52.The section also changes references to “order” to references to “instrument”, reflecting that regulations are the preferred form of statutory instrument in modern drafting practice.
53.Subsection (2) of section 108 allows a taxpayer to make a claim to Revenue Scotland for the amount of additional tax paid because of the instrument that fell, and any related penalty or interest. Subsection (5) provides that any claim must be made within two years of the “relevant date” which is defined in subsection (6).