Memorandum for Public Bill Committee on the application of Standing Order No. 83L of the Standing Orders of the House of Commons relating to Public Business to the Finance Bill as amended

The Bill on Introduction The following is the Department’s assessment of the Bill at introduction 1. In the view of HM Government, Finance (No. 3) Bill 2018 has a differential extent and application in the United Kingdom as shown in the table below. All the provisions except those mentioned below apply to the whole United Kingdom.

2. The provisions where there is a differential extent and application appertain to income tax (clause 3), (SDLT) (clauses 41 to 45) and (clause 64).

3. Clause 3 sets the main rates of income tax for the tax year 2019-20. Main rates apply to the non-savings, non-dividend income of taxpayers in , and . From April 2017 the has had the power to set rates for this type of income for taxpayers in .

4. Clauses 41 to 45 appertain to SDLT. SDLT applies in England and Northern Ireland only. The National Assembly for Wales was given legislative competence to introduce its own equivalent to SDLT by the and has enacted the and Anti-avoidance of Devolved Taxes (Wales) Act 2017. The Scottish Parliament was given legislative competence to introduce its own equivalent to SDLT by section 80I of the and has enacted the Land and Building Transaction Tax (Scotland) Act 2013.

5. Clause 64 deals with landfill tax. Landfill tax applies to disposals in England and Northern Ireland only. The National Assembly for Wales was given legislative competence to introduce its own equivalent to landfill tax by the Wales Act 2014 and has enacted the (Wales) Act 2017. The Scottish Parliament was given legislative competence to introduce its own equivalent to landfill tax by section 80K of the Scotland Act 1998 and has enacted the Landfill Tax (Scotland) Act 2014.

6. Clause 60 deals with . Air passenger duty currently applies in the whole of the UK. The Scottish Parliament was given legislative competence to introduce its own equivalent to air passenger duty by section 17 of the and has enacted the (Scotland) Act 2017. But the Act cannot have effect until the date specified by Treasury order under section 17 of the Scotland Act 2016, and no such order has yet been made.

Would Would Would corresponding corresponding corresponding provision be provision be Legislative Clause or Extends to E&W Extends to E&W Extends and Extends and provision be within the within the Consent Schedule and applies to and applies to applies to applies to within the competence of competence of Motion number England Wales Scotland Northern Ireland competence of the National the Northern needed? the Scottish Assembly for Ireland Parliament? Wales? Assembly?

Clauses 1 and Yes Yes Yes Yes N/A N/A N/A No 2 Clause 3 Yes Yes No Yes No Yes No No Clauses 4 to 40 Yes Yes Yes Yes N/A N/A N/A No Clauses 41 to Yes No No Yes Yes Yes No No 45 Clauses 46 to Yes Yes Yes Yes N/A N/A N/A No 63 Clause 64 Yes No No Yes Yes Yes No No Clauses 65 to 92, and all Yes Yes Yes Yes N/A N/A N/A No Schedules

Commons Stage Committee amendments 7. The amendments which have been made at Committee of the Whole House and Public Bill Committee do not alter the extent and application of the original clauses and schedules which appeared in the Bill on introduction.

8. All new clauses inserted into the Bill by amendment apply to the whole United Kingdom. No legislative consent motions are needed.

HM Treasury, 10 December 2018