Annex 1: Minor changes in the law made by the Act: Change 19: Devolution: sections 80, 83, 110, 167, 207, 732, 755, 769, 879 and 880.
This change concerns the effect of the devolution settlements.
	ScotlandThe approval function in section 79(4) of ICTA conferred on the Secretary of State is exercisable in relation to Scotland by the Scottish Ministers (see SI 1999/1750 made under section 63 of the Scotland Act 1998). Section 83 of this Act reflects that transfer of functions.In Schedule 1 to the Interpretation Act 1978 “Act” is defined to mean an Act of Parliament and “enactment” is defined as not including “an enactment comprised in, or in an instrument made under, an Act of the Scottish Parliament”. The definitions in that Schedule apply “unless the contrary intention appears” (see section 5 of the 1978 Act).Section 581 of ICTA confers an exemption from tax in relation to foreign currency securities, including those issued by a statutory corporation. The definition of “statutory corporation” refers in a number of places to an “Act”. Because of the definition of “Act” in the Interpretation Act 1978, the definition of “statutory corporation” may not include bodies corporate established by an Act of the Scottish Parliament (ASP) (eg Scottish Water established by section 20 of the Water Industry (Scotland) Act 2002).Section 879 of this Act widens the definition of “Act” as that term is used in section 755 to include such corporations. If this is a change in the law, it reflects current practice, and the fact that it can be assumed that the devolution settlement did not intend section 581 of ICTA to operate differently in relation to England and Wales on the one hand and Scotland on the other. The change also widens the scope of the exemption and is therefore favourable to the taxpayer.Section 578 of ICTA confers an exemption from tax in relation to housing grants made under any enactment. Again the Interpretation Act 1978 means that it is not clear that “enactment” covers ASPs or Scottish statutory instruments.Section 879 of this Act provides that ASPs and Scottish statutory instruments are covered by the reference to “enactment” in section 769, so that payments under them are capable of falling within the exemption in that section. If this is a change, it is in line with practice, reflects the intention of the devolution settlement and widens the scope of the exemption.
	Northern IrelandThe reference to the Department for Employment and Learning in section 80 reflects the transfer of functions to that Department from the Department of Economic Development under Part II of Schedule 2 to SR (NI) 1999 No. 481.Section 207 of this Act refers to the Department for Employment and Learning, which is the current name for the former Department of Higher and Further Education, Training and Employment (see the Department for Employment and Learning Act (Northern Ireland) 2001).Section 91A(6)(ba) of ICTA refers to a permit under regulations under section 2 of the Pollution Prevention and Control Act 1999. That reference was inserted by regulations made under that Act. The provision in Northern Ireland corresponding to section 2 of that Act is Article 4 of the Environment (Northern Ireland) Order 2002 (N.I. 7). An amendment along the lines of section 91A(6)(ba) of ICTA would have been ultra vires that Order because taxation is an excepted matter for the purposes of the Northern Ireland Act 1998.In order to maintain parity of treatment throughout the United Kingdom, the definition of “waste disposal licence “ in section 167(1)(c) of this Act is expanded to include a permit under any corresponding provision for the time being in force in Northern Ireland. The “corresponding provision” formula is preferred to specifying the 2002 Order. If the Order is subsequently re-enacted by the Northern Ireland Assembly, the Interpretation Act 1978 cannot be relied on to update the statutory reference.A criminal injuries compensation scheme for Northern Ireland was established under the Criminal Injuries (Northern Ireland) Order 2002 (SI 2002/ 796 (N.I. 1)). That scheme does not fall within the current definition of “the Criminal Injuries Compensation Scheme” in section 329AB(2) of ICTA. To maintain parity of treatment throughout the United Kingdom the definition of that expression in section 732 of this Act is extended to cover the Northern Ireland criminal injuries compensation scheme.There is doubt whether, in the application of section 581 of ICTA to Northern Ireland, “Act” covers the full range of legislation which applies or could apply to Northern Ireland. This means that, as with Scotland, it may not be clear in every case whether the definition of “statutory corporation” in that section covers corporations incorporated by, or on which functions are conferred by, such legislation.Section 880 of this Act widens the definition of “Act” as that term is used in section 755 to include such corporations. This change in the law reflects current practice and widens the scope of the exemption, and so is favourable to the taxpayer.Section 578 of ICTA confers an exemption from tax in relation to housing grants made under any enactment. Again it is not clear that “enactment” covers all of the different kinds of legislation which may apply to Northern Ireland.Section 880 of this Act makes it clear that such legislation is covered by the reference to “enactment” in section 769, so that payments under such legislation are capable of falling within the exemption in that section. Again, if this is a change in the law, it is in line with practice and is taxpayer favourable.
	WalesSections 83 and 110 of this Act refer to functions exercisable by the National Assembly for Wales. The references reflect the transfer of functions from the Secretary of State to the Assembly under the Transfer of Functions Order made under the Government of Wales Act 1998 (SI 1999/672). So far as those functions are concerned, the Order is partly superseded by this Act (and any change in the persons by whom those functions are exercisable will also have to be made by primary legislation).
The changes are in line with current practice and reflect the devolution settlements.