Whether it will give an indication of the tax status of any income received by superiors under the compensation proposals, and of any payme…

No representations have been made to the Scottish Executive about the tax status of any income received by superiors under the compensation proposals contained in the Abolition of Feudal Tenure etc. (Scotland) Bill. The scheme for compensation in respect of the extinction of all remaining feu duties replicates provisions for compensation for the redemption of feu duty under the Land Tenure Reform (Scotland) Act 1974. Payment of arrears of feu duty will be treated as income of the superior, while the compensation payment itself will be treated as a capital receipt. It is envisaged that any compensation payable in respect of a breach of a development value real burden where the superior has registered a notice reserving the right to claim such compensation will also be treated as a capital receipt.