The largest ever transfer of financial powers to Scotland since the creation of the UK has been given royal assent.
After clearing the final stage at House of Commons last week, the royal stamp was the last step in the Scotland Act (2012) becoming law.
The new legislation brings a higher level of financial accountability to Holyrood as MSPs will become responsible for raising a larger portion of their budgets than previously.
New powers for the Scottish Parliament include the ability to introduce new taxes, set the Scottish rate of income tax and borrow larger amounts of capital.
The Scottish Executive will also have its name formally changed to the Scottish Government, and powers over the regulation of air weapons and drink-driving and speed limits will be devolved to Holyrood.
Stamp duty, landfill tax and land tax will also be devolved.
Prime Minister David Cameron said: "We have kept our promise and delivered the biggest transfer of fiscal powers in 300 years - all done with the agreement of the four major parties in Scotland - and helped to secure a strong and confident Scotland within a strong and confident United Kingdom
"The Scottish Parliament is now more accountable and more responsible than ever before, which is not just good for Scotland but also good for the whole United Kingdom. Now it is time for the Scottish people to recognise all the powers that Holyrood has and join in the debate about how these powers are used."
Secretary of State for Scotland Michael Moore added: "This is a genuinely historic day for devolution and the relationship between Scotland’s two governments and the people who elect them.
"The new Scotland Act will make the Scottish Parliament responsible for raising around a third of the Scottish budget. It also marks a long period of considered scrutiny which has resulted in a set of new powers that can help Scotland prosper within the United Kingdom."
Despite the Bill passing into law, Holyrood will not be able to use the new powers until 2016 – two years after the Government's proposed date for a Scottish independence referendum.
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