Hansard

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.