The Non-Domestic Rates (Relief for New and Improved Properties) (Scotland) Regulations 2022

PART 3 S Improved property

Availability of relief – lands and heritages in respect of which a relevant increase has been made within the previous 12 months S

9.—(1) Regulations 10 and 11 grant relief to a person who is liable to pay non-domestic rates in respect of lands and heritages on a day in the relevant year if—

(a) they are lands and heritages in respect of which one or more relevant increases within the meaning of section 2A(5) of the 1975 Act have been made with effect from a date within the previous 12 months,

(b) they are not lands and heritages which are eligible for relief under regulation 4, 6 or 8, and

(c) the relevant increase results from an entry in the valuation roll for the lands and heritages being altered in pursuance of section 2(1)(d) of the 1975 Act (alteration due to a material change of circumstances).

(2) Where the rateable value of the lands and heritages is reduced during a period of works as described in section 2A(5)(a) of the 1975 Act, the relevant increase is the increase in the rateable value between that when the works commenced and that when the entry is altered due to the material change of circumstances as a result of the completion of the works.

Commencement Information

I1 Reg. 9 in force at 1.4.2022, see reg. 1

Relief granted – lands and heritages in respect of which a relevant increase has been made within the previous 12 months S

10.—(1)  [F1 In relation to the financial year 2023-2024, the] relief granted is that the amount of non-domestic rates payable is to be reduced as set out in paragraph (4) or, as the case may be, paragraph (5).

(2) The amount of relief granted depends on—

(a) whether regulation 7 of the [F2 2023] Regulations applies (transitional relief in the amount of rates payable),

(b) the total amount of any relevant increases made in respect of the lands and heritages taking effect on a day within the previous 12 months (“the reference amount”).

(3) No relief is granted unless an application is made in accordance with regulation 12.

(4) Where regulation 7 of the [F3 2023] Regulations does not apply to the lands and heritages—

(a) the amount of non-domestic rates payable is to be calculated on the rateable value minus the reference amount, but

(b) if the rateable value minus the reference amount is a negative figure, then no relief is granted (and the amount of non-domestic rates payable is to be calculated on the rateable value).

(5) [F4 Where regulation 7 of the 2023 Regulations applies, the amount of non-domestic rates payable is the transitional limit calculated in accordance with regulation 9 of those Regulations], and for these purposes the transitional limit is to be calculated—

(a) in respect of lands and heritages for which the rateable value exceeds the sum of the rateable value on [F5 1 April 2023] and the reference amount, in accordance with the formula—F6 F7

where—

• ARV is the adjusted rateable value, found by subtracting the reference amount from the rateable value of the lands and heritages,

• [F8 BL is the base liability of the lands and heritages calculated in accordance with regulation 10 of the of the 2023 Regulations,]

• [F9 RV is the rateable value of the lands and heritages on 1 April 2023,]

• [F10 PF is the poundage figure of—

  (i)

  0.524 where the lands and heritages have a rateable value exceeding £100, 000,

  (ii)

  0.511 where the lands and heritages have a rateable value exceeding £51,000 but not exceeding £100,000, or

  (iii)

  0.498 in any other case, and]

• [F11 X is—

  (i)

  1.125 where at revaluation on 1 April 2023 the lands and heritages have a rateable value of £20,000 or less,

  (ii)

  1.250 where at revaluation on 1 April 2023 the lands and heritages have a rateable value between £20,001 and £100,000, and

  (iii)

  1.375 where at revaluation on 1 April 2023 the lands and heritages have a rateable value of more than £100, 000, or]

(b) in any other case, in accordance with the formula—F12 F13

where—

• [F14 BL, ARV, RV and X] have the same meanings as in sub-paragraph (a).

[F15 (6) In this regulation, “the 2023 Regulations” means the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023.]

Textual Amendments

F1 Words in reg. 10(1) substituted (1.4.2024) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2024 (S.S.I. 2024/5), regs. 1, 17(2)(a) (with reg. 13)

F2 Word in reg. 10(2)(a) substituted (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(2) (with reg. 13)

F3 Word in reg. 10(4) substituted (1.4.2024) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2024 (S.S.I. 2024/5), regs. 1, 17(2)(b) (with reg. 13)

F4 Words in reg. 10(5) substituted (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(3)(a) (with reg. 13)

F5 Words in reg. 10(5)(a) substituted (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(3)(b)(i) (with reg. 13)

F6 Word “X” substituted for “2.247” in reg. 10(5)(a) formula (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(3)(b)(ii)(aa) (with reg. 13)

F7 Word “366” substituted for “365” in reg. 10(5)(a) formula (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(3)(b)(ii)(bb) (with reg. 13)

F8 Words in reg. 10(5)(a) substituted (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(3)(b)(iii) (with reg. 13)

F9 Words in reg. 10(5)(a) substituted (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(3)(b)(iv) (with reg. 13)

F10 Words in reg. 10(5)(a) substituted (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(3)(b)(v) (with reg. 13) (as amended by S.S.I. 2023/63, regs. 1, 2(6))

F11 Words in reg. 10(5)(a) inserted (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(3)(b)(vi) (with reg. 13)

F12 Word "X" substituted for "2.247" in reg. 10(5)(b) formula (1.4.2024) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2024 (S.S.I. 2024/5), regs. 1, 17(2)(c)(i)(aa) (with reg. 13)

F13 Word "366" substituted for "365" in reg. 10(5)(b) formula (1.4.2024) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2024 (S.S.I. 2024/5), regs. 1, 17(2)(c)(i)(bb) (with reg. 13)

F14 Words in reg. 10(5)(b) substituted (1.4.2024) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2024 (S.S.I. 2024/5), regs. 1, 17(2)(c)(ii) (with reg. 13)

F15 Reg. 10(6) substituted (1.4.2023) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 (S.S.I. 2023/31), regs. 1, 17(4) (with reg. 13)

Commencement Information

I2 Reg. 10 in force at 1.4.2022, see reg. 1

[F16 Relief granted – financial year 2024-2025 – lands and heritages in respect of which a relevant increase has been made within the previous 12 months S

10A.— (1) In relation to the financial year 2024-2025 the relief granted is that the amount of non-domestic rates payable is to be reduced as set out in paragraph (4) or, as the case may be, paragraph (5).

(2) The amount of relief granted depends on—

(a) whether regulation 7 of the 2024 Regulations applies (transitional relief in the amount of rates payable),

(b) the total amount of any relevant increases made in respect of the lands and heritages taking effect on a day within the previous 12 months (“the reference amount”).

(3) No relief is granted unless an application is made in accordance with regulation 12.

(4) Where regulation 7 of the 2024 Regulations does not apply to the lands and heritages—

(a) the amount of non-domestic rates payable is to be calculated on the rateable value minus the reference amount, but

(b) if the rateable value minus the reference amount is a negative figure, then no relief is granted (and the amount of non-domestic rates payable is to be calculated on the rateable value).

(5) Where regulation 7 of the 2024 Regulations applies, the amount of non-domestic rates payable is the transitional limit calculated in accordance with regulation 9 of those Regulations, and for these purposes the transitional limit is to be calculated—

(a) in respect of the lands and heritages for which the rateable value exceeds the sum of the rateable value on 1 April 2023 and the reference amount, in accordance with the formula—

where—

• ARV is the adjusted rateable value, found by subtracting the reference amount from the rateable value of the land and heritages,

• BL is the base liability of the lands and heritages calculated in accordance with regulation 10 of the 2024 Regulations,

• RV is the rateable value of the lands and heritages on 1 April 2023,

• PF is the poundage figure of—

  (i)

  0.559 where the lands and heritages have a rateable value exceeding £100,000,

  (ii)

  0.545 where the lands and heritages have a rateable value exceeding £51,000 but not exceeding £100, 000,

  (iii)

  0.498 where the lands and heritages have a rateable value of £51,000 or less, and

• X is—

  (i)

  1.406 where at revaluation on 1 April 2023 the lands and heritages had a rateable value of £20,000 or less,

  (ii)

  1.875 where at revaluation on 1 April 2023 the lands and heritages had a rateable value between £20,001 and £100,000,

  (iii)

  2.406 where at revaluation on 1 April 2023 the lands and heritages had a rateable value of more than £100,000, or

(b) in any other case in accordance with the formula—

where—

• BL, ARV, RV and X have the same meanings as in sub-paragraph (a).

(6) In this regulation, “the 2024 Regulations” means the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2024.]

Textual Amendments

F16 Reg. 10A inserted (1.4.2024) by The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2024 (S.S.I. 2024/5), regs. 1, 17(3) (with reg. 13)

Additional relief granted – lands and heritages in respect of which a relevant increase has been made within the previous 12 months S

11.—(1) Relief is granted in addition to that granted by regulation 10 where “reduction X” is less than “reduction Z”.

(2) In this regulation—

(a) “reduction X” is the reduction applied by the provisions listed in paragraph (3), and

(b) “reduction Z” is the reduction that would have been applied by those provisions if the rateable value of the lands and heritages were lowered by the reference amount described in regulation 10(2)(b).

(3) The provisions are—

(a) section 24(3) of the Local Government (Scotland) Act 1966(1) (empty buildings relief),

(b) paragraph 3 of schedule 2 of the Local Government and Rating Act 1997(2) (rural rate relief),

(c) regulations 3 and 3B of the Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 2010(3) (renewable energy generation relief),

(d) regulation 5 of the Non-Domestic Rates (Enterprise Areas) (Scotland) Regulations 2016(4) (enterprise areas relief), and

(e) regulation 3 of the Non-Domestic Rates (Levying and Miscellaneous Amendments) (Scotland) Regulations 2022(5) (the Small Business Bonus Scheme).

(4) The additional relief granted is the amount by which reduction Z exceeds reduction X (but the amount payable is not to be reduced to less than nil).

(5) For the avoidance of doubt, relief under this regulation ceases, in respect of a relevant increase, 12 months after the date from which it had effect.

Commencement Information

I3 Reg. 11 in force at 1.4.2022, see reg. 1

(1)

1966 c. 51. Section 24(3) was substituted by section 154 of the Local Government etc. (Scotland) Act 1994 (c. 39) and amended by section 1(2)(a), (b) and (c) of the Local Government Finance (Unoccupied Properties etc.) (Scotland) Act 2012 (asp 11). Section 24 of the 1966 Act will be repealed when section 19 of the Non-Domestic Rates (Scotland) Act 2020 comes into force.

(2)

1997 c. 29. Paragraph 3 was amended by section 29 of the Local Government in Scotland Act 2003 (asp 1), paragraph 25 of schedule 8 of the Postal Services Act 2000 (c. 26) and paragraph 148 of schedule 12 of the Postal Services Act 2011 (c. 5).

(3)

S.S.I. 2010/44 which was amended by S.S.I. 2010/440, S.S.I. 2016/121, S.S.I. 2017/60, S.S.I. 2018/64 and S.S.I. 2020/391.

(4)

S.S.I. 2016/119 which was amended by S.S.I. 2020/38, S.S.I. 2020/391 and S.S.I. 2022/48.

(5)

S.S.I. 2022/48.