Prescription Bill passed unanimously by MSPs

The Prescription Bill aims to increase clarity, certainty and fairness for those in dispute over particular rights and obligations – such as when under a contract.

Negative prescription establishes time-limits for when certain obligations and rights end. If the time-limit is missed, the right is lost so cannot be enforced.

Community safety minister Ash Denham said: “Negative prescription plays an important role in balancing individual interests, between creditors and debtors. It also serves the public interest in legal certainty by having claims raised promptly. Reform is needed to remove grey areas in the law, such as contention regarding the date the prescription clock starts ticking.

“This new legislation supports our determination to modernise civil law so it is fit for purpose in the 21st century. These changes will increase clarity, certainty and fairness, and benefit persons or bodies in resolving disputes.”

Stephen Cowan, managing director at Yuill+Kyle,told Scottish Legal News: “From a debt recovery perspective little has changed with debts prescribing after five years, unless prescription has been interrupted.

“However, there are exceptions to this which benefit statutory bodies such as HM Revenue and Customs, council tax and non-domestic rates where such debts do not prescribe until 20 years.

“There was some debate over this issue particularly focussing on council tax. Why should a dilatory council be able to chase a debtor for council tax when they had done nothing for five years? Would it not be fairer to the general public for these debts to be written off if recovery had not commenced within this period?

“But removing the concession was a step too far – so the status quo which has existed for a considerable time still prevails.”