The Non-Domestic Rates (Levying) (Scotland) Regulations 1995

Explanatory Note

(This note is not part of the Regulations)

These Regulations make provision as to the amount payable in certain circumstances as non-domestic rates in respect of property in Scotland. They apply only to financial year 1995-96 (“the relevant year”).

Part I makes provision as to citation, commencement and interpretation.

Part II deals with amounts payable in respect of property which is shown in the valuation roll as at 1st April 1995. The Part ceases to apply to property if and when it becomes the subject of a merged, split or reorganised entry in the valuation roll taking effect during the relevant year. For every day of the relevant year, the notional rates liability for a property (basically, the full amount ordinarily payable as rates) must be compared against that property’s upper and lower transitional limits. If the notional liability is more than the upper limit or less than the lower limit, the amount payable will be equal to the upper or lower limit, as the case may be (regulation 7). Upper and lower transitional limits are calculated by multiplying a property’s notional rates liability for 1994/95 (its “base liability”) by set figures (regulations 9 and 10). Regulations 11 and 12 make provision for the calculation of base liability in most cases. Regulations 13 to 16, and Schedules 1 to 4, provide special rules for the calculation of base liability in respect of certain property occupied in connection with the electricity and telecommunications industries and in respect of certain canals and railway properties. Regulation 17 specifies how transitional limits are to be recalculated in cases where the rateable value of property changes during the relevant year.

Part III makes provision for the situation where property is shown in a merged, split or reorganised entry in the valuation roll which takes effect during the relevant year. If the amount of rates payable in respect of any component of the property shown in the new entry was being determined under these Regulations immediately prior to that entry taking effect, then Part III applies to determine the amount payable in respect of that property for the rest of the year. That amount is calculated by apportioning or aggregating, as the case may be, the amount or amounts payable immediately prior to the effective date of the new entry in respect of the property affected by the new entry (regulations 19 and 20). Regulation 21 provides for amounts payable to be recalculated if there is a change in the rateable value of property whilst Part III applies to it.

Part IV deals with reductions, remissions and exemptions. Nothing in the Regulations requires the payment of rates on property which is entirely exempt from rates under any other enactment, or prejudices the power of a rating authority to grant discretionary reductions or remissions (regulation 24). Regulations 22 and 23 provide for reductions under other enactments to apply in cases where the amount payable is determined under Part II or III in the same way as they apply in cases where these Regulations do not have effect.