2010 No. 440

Rating And Valuation

The Non-Domestic Rates (Levying) (Scotland) (No. 2) Regulations 2010

Made

Laid before the Scottish Parliament

Coming into force

The Scottish Ministers make the following Regulations in exercise of the powers conferred by section 153 of the Local Government etc. (Scotland) Act 19941 and all other powers enabling them to do so.

Citation and commencement1

These Regulations may be cited as the Non‑Domestic Rates (Levying) (Scotland) (No. 2) Regulations 2010 and come into force on 1st April 2011.

Interpretation2

In these Regulations—

  • “the 1962 Act” means the Local Government (Financial Provisions etc.) (Scotland) Act 19622;

  • “the 1966 Act” means the Local Government (Scotland) Act 19663;

  • “the 1975 Act” means the Local Government (Scotland) Act 19754;

  • “the 1997 Act” means the Local Government and Rating Act 19975;

  • “cumulative rateable value” means the total rateable value of all lands and heritages which an individual ratepayer is either—

    1. a

      entitled to occupy, whether they are occupied or not; or

    2. b

      actually in occupation of, whether entitled to or not,

    or both;

  • “lands and heritages” has the meaning prescribed by and under section 42 of the Lands Valuation (Scotland) Act 18546;

  • “part residential subjects” has the meaning prescribed by section 99(1) of the Local Government Finance Act 19927;

  • “rateable value”, in relation to lands and heritages and a particular date, means—

    1. a

      in the case of part residential subjects, the rateable value entered in the roll for that date and apportioned to the non residential use of those subjects; and

    2. b

      in any other case, the rateable value entered in the roll for that date in respect of those lands and heritages,

    and includes a rateable value so entered with retrospective effect;

  • “rates” means non-domestic rates levied under section 7B of the 1975 Act8;

  • “the relevant year” means the period of 12 months beginning with 1st April 2011; and

  • “the roll” means a valuation roll made up under section 1 of the 1975 Act9.

Amount payable as rates – lands and heritages with rateable value of £18,000 or less3

1

This regulation grants relief to a person who is liable to pay rates in respect of lands and heritages on a day in the relevant year where they have—

a

a rateable value of £18,000 or less; and

b

a cumulative rateable value not exceeding £25,000.

2

Subject to paragraph (3), where the cumulative rateable value of lands and heritages falls within one of the ranges specified in column 1 (cumulative rateable value range) of the table below, the amount of rates payable shall be reduced by the percentage specified in the corresponding entry in column 2 (percentage of rate relief).

Cumulative rateable value range

Percentage of rate relief

£10,000 or less

100%

More than £10,000 but not exceeding £12,000

50%

More than £12,000 but not exceeding £18,000

25%

More than £18,000 but not exceeding £25,000

25% on each individual property with a rateable value of £18,000 or less

3

The amount of rate relief calculated under paragraph (2) shall be reduced by the amount of any—

a

reduction by virtue of one or more of the following enactments:—

i

section 4(2) of the 1962 Act10;

ii

section 4(5)(c) of the 1962 Act11;

iii

section 24(3) of the 1966 Act12;

iv

section 24A of the 1966 Act13;

v

the Rating (Disabled Persons) Act 197814;

vi

paragraph 3 of Schedule 2 to the 1997 Act15; or

b

determination in accordance with sections 6(1) and 7B(2) of the Valuation and Rating (Scotland) Act 195616,

but only to the extent that the amount of such rate relief is reduced to nil.

Amount payable as rates – lands and heritages with rateable value of more than £35,0004

1

This regulation applies to lands and heritages on any day in the relevant year when they have a rateable value exceeding £35,000.

2

The additional amount payable as rates in respect of lands and heritages for a day in the relevant year on which this regulation applies to them shall be calculated in accordance with the formula—

AARP = (RV x S)365math

where—

  • AARP is the additional amount of rates payable;

  • RVis the rateable value of the lands and heritages on that day; and

  • S is the additional factor of 0.007.

3

This regulation does not apply to lands and heritages to which regulation 3 of the Non-Domestic Rates (Levying) (Scotland) (No. 3) Regulations 2010 (S.S.I. 2010/441) applies.

Renewable Energy Generation Relief5

1

Regulation 2 (interpretation) of the Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 201017 is amended in accordance with this regulation.

2

For the definition of “local authority”, substitute—

  • “local authority” means the rating authority in whose valuation roll the entry for the lands and heritages appears;

3

In the definition of “renewable heat or power”, omit “and has an electrical capacity of 50 kilowatts or less”.

Exemptions and discretionary reductions and remissions6

Nothing in these Regulations—

a

requires rates to be paid in respect of lands and heritages for any day where those lands and heritages are under any enactment entirely exempt from rates for that day; or

b

prejudices the power of a rating authority to grant a reduction or remission of rates under section 4(5) of the 1962 Act, section 25A of the 1966 Act18 or paragraph 4 of Schedule 2 to the 1997 Act19.

Revocation of the 2010 Regulations7

1

In this regulation, “the 2010 Regulations” means the Non-Domestic Rates (Levying) (Scotland) Regulations 201020.

2

Subject to paragraph (3), the 2010 Regulations are revoked.

3

Nothing in paragraph (2) shall affect the continuing operation of the 2010 Regulations as regards any day prior to 1st April 2011.

JOHN SWINNEYA member of the Scottish ExecutiveSt Andrew’s House,Edinburgh
EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations make provision for the amount payable in certain circumstances as non‑domestic rates in respect of non‑domestic subjects in Scotland. They apply only to the financial year 2011‑2012. The non‑domestic rate for subjects not covered by these Regulations or the Non-Domestic Rates (Levying) (Scotland) (No. 3) Regulations 2010 (S.S.I. 2010/441) is fixed by Order made under the Local Government (Scotland) Act 1975.

Regulation 3 provides for the general reduction in rates for a ratepayer of non‑domestic subjects with a rateable value of £18,000 or less. Regulation 3(2) sets out the reduction on a sliding scale of between 25% and 100%.

Regulation 3(3) provides for a reduction in rate relief (calculated in accordance with regulation 3(2)) if the enactments listed in regulation 3(3)(a) or (b) already provide for a reduction or determination.

Regulation 4 provides a formula for the additional amount payable as rates for lands and heritages with a rateable value exceeding £35,000, other than those to which regulation 3 of the Non-Domestic Rates (Levying) (Scotland) (No. 3) Regulations 2010 applies.

Under the Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 2010 (S.S.I. 2010/44) a reduction in rates is available in respect of lands and heritages used solely for the generation of renewable heat or power (or both). Regulation 5 removes a limitation in those Regulations, that heat or power produced from renewable sources by a combined heat and power system only qualifies for relief if the system has an electrical capacity of 50 kilowatts or less.

Regulation 5 also amends the definition of “local authority” in those Regulations, to ensure that applications go to the local authority in whose valuation roll the relevant entry appears. This is to allow for instances where, because of the designated assessor regime, that is a different local authority from the area where the lands and heritages are situated.

Regulation 6 allows for exemptions and discretionary reductions.

The Non-Domestic Rates (Levying) (Scotland) Regulations 2010 are revoked by regulation 7.