The Abolition of Domestic Rates (Domestic and Part Residential Subjects) (Scotland) Regulations 1990

Explanatory Note

(This note is not part of the Regulations)

Under Part I of the Abolition of Domestic Rates Etc. (Scotland) Act 1987 (c. 47) (“the Act”), rates are not leviable in respect of domestic subjects. Domestic subjects are defined in section 2(3) of the Act, as amended by the Local Government Finance Act 1988 (c. 41).

Section 2(4) of the Act, as so amended, empowers the Secretary of State to vary the definition of domestic subjects so as to include or exclude “such lands and heritages or parts thereof or class or classes of lands and heritages or parts thereof as may be prescribed”. The Secretary of State has already exercised this power in the Abolition of Domestic Rates (Domestic and Part Residential Subjects) (Scotland) Regulations 1988 (S.I. 1988/1477), the Abolition of Domestic Rates (Domestic and Part Residential Subjects) (Scotland) Regulations 1989 (S.I. 1989/241) and the Abolition of Domestic Rates (Domestic and Part Residential Subjects) (No. 2) (Scotland) Regulations 1989 (S.I. 1989/1477).

Regulation 3 of these Regulations further varies the definition of domestic subjects to exclude, in any financial year, any dwellinghouse which is made available by a relevant person for letting, commercially, as self-catering accommodation, for short periods amounting in the aggregate to 140 days or more in that year or any dwellinghouse which is intended by a relevant person to be made so available. This variation has the effect of rendering such self-catering accommodation liable to rates. Relevant person for this purpose is defined as being the owner of the premises or, if they are let or sublet for 12 months or more, the tenant or the subtenant. This provision does not apply during any part of a financial year during which the premises are in fact used as the sole or main residence of any person, disregarding the effect of section 8(4) of the Act (students).

Regulation 4 of these Regulations further varies the definition of domestic subjects to include any premises used wholly or mainly as a school boarding house or school dormitory accommodation, together with any premises used wholly in connection with such property. This variation has the effect of exempting such premises from rates.

Regulation 5 of these Regulations revokes the Abolition of Domestic Rates (Domestic and Part Residential Subjects) (Scotland) Regulations 1989 (“the 1989 Regulations”). The 1989 Regulations included within the definition of domestic subjects certain parts of part residential subjects, such as hotels, public houses, fire stations, caravan sites, boarding houses and holiday camps, which were used wholly or mainly as the sole or main residence of a person. This had the effect of rendering such persons liable to the personal community charge because they would no longer be living in premises which were subject to non domestic rates and therefore exempt under paragraph 12(c) of Schedule 1A to the 1987 Act, as amended by paragraph 35 of Schedule 12 to the Local Government Finance Act 1988.

It is, however, no longer necessary to have the 1989 Regulations. This is because the said paragraph 12(c) is amended, with effect from 1st April 1990, by paragraph 15 of Schedule 6 to the Local Government and Housing Act 1989 (c. 42) to remove the exemption from the personal community charge of a person residing in part residential subjects. The 1989 Regulations are therefore revoked.

The effect of these Regulations is that certain premises either will cease to be domestic subjects and become liable to be entered in the valuation roll or will become domestic subjects and will fall to be deleted from the valuation roll.