ANNEX 1:: MINOR CHANGES IN THE LAW MADE BY THE BILL This change is in principle adverse to some taxpayers and favourable to others. But it is expected to have no practical effect as it is in line with current practice. Change 152: Interpretation: references to Scottish and Northern Ireland legislation: sections 66, 114, 532, 536, 558, 802, 990 and 1018
This change is about the extent to which references to “Act” are to be interpreted as including references to Scottish and Northern Irish primary legislation.
Section 990(1) defines “Act” to include Northern Ireland legislation for the purposes of the Income Tax Acts (unless the context otherwise requires: see section 988(1)). “Northern Ireland legislation” is defined in section 24(5) of the Interpretation Act 1978 (the 1978 Act) and applies by virtue of Schedule 1 to the 1978 Act. It is the term commonly used in legislation when referring to Northern Irish primary legislation. The definition of “Northern Ireland legislation” has seven limbs, (a) to (g).
Section 832(1) of ICTA defines “Act” to include Acts of the Parliament of Northern Ireland and a Measure of the Northern Ireland Assembly. So it expressly covers limbs (b) and (d) of the definition of “Northern Ireland legislation” in the 1978 Act. And, as a consequence of various deeming provisions contained in Schedule 12 to the Northern Ireland Act 1998, it also covers limbs (c), (e) and (f) of the definition of “Northern Ireland legislation”. Only limbs (a) and (g) of the definition of “Northern Ireland legislation” are not covered.
To simplify the definition of “Act” the current wording in section 832(1) of ICTA is replaced with a simple reference to “Northern Ireland legislation”. The change in law is that limbs (a) and (g) of the definition of “Northern Ireland legislation” will now be covered. This will not have any practical consequences.
Section 1018(1) provides that in certain sections of this Act “Act” is to include Acts of the Scottish Parliament. “Act” on its own does not include Acts of the Scottish Parliament (see the definition of “Act” in Schedule 1 to the 1978 Act) and the definition of “Act” in section 990 does not extend its meaning to include Acts of the Scottish Parliament.
But it is appropriate that references to “Act” in sections 66, 532, 536 and 558 should include references to Acts of the Scottish Parliament. In each of these cases the extension of the meaning of “Act” can only be advantageous to taxpayers. A similar provision is contained in section 879 of ITTOIA.
Section 1018(2) overrides the definition of “Act” in section 990 for the purposes of this Act. This is to make it easier to identify the sections where Northern Ireland legislation is relevant and where it is not, and follows the approach taken in section 880 of ITTOIA. The references to sections 66, 114, 532, 536, 558 and 802 either reflect the current law or, if they change the current law, can only be advantageous to taxpayers.
Examples of where “Act” does not include Northern Ireland legislation are to be found in sections 4(1), 459(1) and 849(2).