§ The Earl of Caithnessasked Her Majesty's Government:
Whether the Scottish Parliament is constitutionally entitled to change the definition of a Scottish charity for purposes other than the application of reliefs from United Kingdom taxes. [HL3968]
§ Lord McIntosh of HaringeyYes. Schedule 5 to the Scotland Act 1998 defines matters that are reserved and are therefore excluded from the competence of the Scottish Parliament. Section C1 of Part II of Schedule 5 reserves business associations but specifically exempts from this reservation "the creation, operation, regulation and dissolution of charities". As a result, these matters are within the competence of the Scottish Parliament. As the noble Earl indicates, taxation is reserved and the application of reliefs from United Kingdom taxes is a matter for the Inland Revenue.