Overview
If you are registered to pay Scottish Aggregates Tax, Revenue Scotland may require you to provide a security that Revenue Scotland considers appropriate. Revenue Scotland can only direct that a security is required where it appears necessary to prevent potential Scottish Aggregates Tax loss and protect the tax revenue.
A ‘security’ for Scottish Aggregates Tax is a financial payment, made to Revenue Scotland. That payment can then be used, where necessary, if an amount of Scottish Aggregates Tax becomes due and goes unpaid, and provides Revenue Scotland with assurance that a potential financial risk, can be mitigated.
You, or your tax representative, must provide the required security by the date specified by Revenue Scotland.
Security required to appoint a tax representative
If Revenue Scotland believe it necessary to prevent potential Scottish Aggregates Tax loss and protect tax revenue, a taxpayer may be required to provide a security to appoint their choice of tax representative. This specifically relates to situations where the taxpayer is not resident in the UK (see UK Tax Representatives). Revenue Scotland will specify the amount of any security required to secure the approval of the tax representative.
For the majority of UK tax representatives, no security will be required. However, a security may be required where the chosen tax representative has a history of poor compliance or lack of engagement with Revenue Scotland.
You must provide the required security by the date specified Revenue Scotland.
How to pay securities
If a security is required, Revenue Scotland will specify how and when the security must be paid. This will typically be by bank transfer, with a transaction reference number.
If you don’t pay a security by the date directed by Revenue Scotland, you may be liable to a penalty. Where a penalty is deemed due, it will be charged at a fixed rate of £20,000.