HL Deb 10 May 2002 vol 634 c206WA
The Earl of Caithness

asked 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 Haringey

Yes. 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.