The Scottish Tax Tribunals are to become Scottish Tribunals from 24 April 2017.
A reform programme known as ‘making justice work’, taking place in Scotland since 2014, has given rise to a number of measures designed to overhaul the existing systems and facilitate access to justice for a wider range of people and businesses. Examples include the Tribunals (Scotland) Act 2014 and the Courts Reform (Scotland) Act 2014, which together impact the tribunal system for Scottish devolved taxes disputes.
As a result of the Tribunals (Scotland) Act 2014 (T(S)A 2014), changes are being made to the tribunals system in Scotland.
The main aim of T(S)A 2014 was to ensure the creation of a devolved tribunal system for Scotland. This two tier system would collectively be known as the Scottish Tribunals and would comprise a First-tier Tribunal and an Upper Tribunal.
The functions and members currently within the existing First-tier Tax Tribunal are to be placed within a Tax Chamber, which will become a subset of the newly formed First-tier Tribunal for Scotland from 24 April 2017. The First-tier Tax Tribunal in Scotland will cease to exist from that date. The Tax Chamber is to have its own website, and the Scottish Tribunals will have a common leadership and set of policies and practices.
On the same day, the Upper Tax Tribunal is to be abolished. Its functions and members will transfer to the Upper Tribunal for Scotland. Administratively speaking, no discernible changes will be made and the Scottish Courts and Tribunals Service will continue to process cases. Transitional arrangements are being put in place for ongoing cases and appeals, and all preliminary applications are to be directed to the Tax Chamber of the First-tier Tribunal in the first instance.
Some key points are:
The Scottish Tribunals only deal with devolved taxes, i.e. land and buildings transaction tax and Scottish landfill tax and, in due course, air departure tax. There is the possibility that in the future the administration of UK tax appeals may be devolved to the Scottish Tribunals (see Scotland Act 2016 s 39).
It should be noted that the existing Scottish tax tribunal rules and procedures differ slightly from the corresponding UK rules.
The rules of procedure for the new Tax Chamber are also expected to vary slightly from the UK rules. However, although a consultation was undertaken on this in December 2016 on the draft legislation and analysed in January 2017, at the time of writing, the final amended legislation has not yet been issued.
Appeals can be lodged with Scottish Tribunals without seeking a review by or mediation with Revenue Scotland.
First-tier Tribunal decisions may be made to the Upper Tribunal, and by the Upper Tribunal to the Court of Session. Court of Session appeals are then handled by the UK Supreme Court. Appeals may of course only be made on a point of law and with duly granted permission.
Details of the appeals process to the Upper Tribunal are due to be released soon. However, cases being heard (but not finalised) by the Upper Tax Tribunal immediately prior to 24 April will be heard and/or finalised by the Upper Tribunal, according to the law applicable to the Upper Tribunal.
Only two cases have been heard since the Scottish Tax Tribunals were formed in 2014. For further information, see
Home >Articles > Changes to the Scottish Tax Tribunals
Changes to the Scottish Tax Tribunals
The Scottish Tax Tribunals are to become Scottish Tribunals from 24 April 2017.
A reform programme known as ‘making justice work’, taking place in Scotland since 2014, has given rise to a number of measures designed to overhaul the existing systems and facilitate access to justice for a wider range of people and businesses. Examples include the Tribunals (Scotland) Act 2014 and the Courts Reform (Scotland) Act 2014, which together impact the tribunal system for Scottish devolved taxes disputes.
As a result of the Tribunals (Scotland) Act 2014 (T(S)A 2014), changes are being made to the tribunals system in Scotland.
The main aim of T(S)A 2014 was to ensure the creation of a devolved tribunal system for Scotland. This two tier system would collectively be known as the Scottish Tribunals and would comprise a First-tier Tribunal and an Upper Tribunal.
The functions and members currently within the existing First-tier Tax Tribunal are to be placed within a Tax Chamber, which will become a subset of the newly formed First-tier Tribunal for Scotland from 24 April 2017. The First-tier Tax Tribunal in Scotland will cease to exist from that date. The Tax Chamber is to have its own website, and the Scottish Tribunals will have a common leadership and set of policies and practices.
On the same day, the Upper Tax Tribunal is to be abolished. Its functions and members will transfer to the Upper Tribunal for Scotland. Administratively speaking, no discernible changes will be made and the Scottish Courts and Tribunals Service will continue to process cases. Transitional arrangements are being put in place for ongoing cases and appeals, and all preliminary applications are to be directed to the Tax Chamber of the First-tier Tribunal in the first instance.
Some key points are:
The Scottish Tribunals only deal with devolved taxes, i.e. land and buildings transaction tax and Scottish landfill tax and, in due course, air departure tax. There is the possibility that in the future the administration of UK tax appeals may be devolved to the Scottish Tribunals (see Scotland Act 2016 s 39).
It should be noted that the existing Scottish tax tribunal rules and procedures differ slightly from the corresponding UK rules.
The rules of procedure for the new Tax Chamber are also expected to vary slightly from the UK rules. However, although a consultation was undertaken on this in December 2016 on the draft legislation and analysed in January 2017, at the time of writing, the final amended legislation has not yet been issued.
Appeals can be lodged with Scottish Tribunals without seeking a review by or mediation with Revenue Scotland.
First-tier Tribunal decisions may be made to the Upper Tribunal, and by the Upper Tribunal to the Court of Session. Court of Session appeals are then handled by the UK Supreme Court. Appeals may of course only be made on a point of law and with duly granted permission.
Details of the appeals process to the Upper Tribunal are due to be released soon. However, cases being heard (but not finalised) by the Upper Tax Tribunal immediately prior to 24 April will be heard and/or finalised by the Upper Tribunal, according to the law applicable to the Upper Tribunal.
Only two cases have been heard since the Scottish Tax Tribunals were formed in 2014. For further information, see
