The Non-Domestic Rates (District Heating Relief and Renewable Energy Generation Relief) (Scotland) Amendment Regulations 2021

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Non-Domestic Rates (Domestic Heating Relief) (Scotland) Regulations 2017 (“the 2017 Regulations”) and the Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 2010 (“the 2010 Regulations”).

Regulation 2(4) amends the 2017 Regulations to provide a reduction of 90% in the non-domestic rates that would be payable by a person using lands and heritages for the purposes of a district heating network, where that network is wholly or mainly powered by renewable energy sources. Regulation 2(2) inserts a definition of “renewable generation” into the 2017 Regulations for this purpose. This relief is only available for such networks where they are first entered in the valuation roll after the 2020/21 financial year. It is available for three financial years. An application for the relief is required.

Regulation 2(3) makes a consequential amendment and provides that relief where lands and heritages are used for district heating networks will continue to be available until the end of the 2031/32 financial year. That relief is a reduction of 50% in the non-domestic rates that would otherwise be payable. Regulation 2(5) provides for a reduction in the relief if other enactments provide a relief.

Regulation 3(2) amends the 2010 Regulations in relation to relief where lands and heritages are used to generate renewable energy from water. That relief will continue to be available until the end of the 2031/32 financial year. It is a reduction of 60% in the non-domestic rates that would otherwise be payable.