HOW TO WORK OUT YOUR NON-DOMESTIC RATES
Properties used for business in Scotland pay Non-Domestic Rates that are charged based on a standard Rate Poundage which is multiplied by the Rateable Value of that property, as set out in the Valuation Roll.
Link to Valuation Roll here: https://www.saa.gov.uk/
The national Non-Domestic Rate Poundage set by the Scottish Government for 2021 to 2022 is 49 pence in the pound. Businesses with a Rateable Value between £51,001 and £95,000 pay an additional supplement of 1.3 pence in the pound and businesses with a Rateable Value over £95,000 pay an additional supplement of 2.6 pence in the pound.
RETAIL, HOSPITALITY, LEISURE AND AVIATION RELIEF IN 2021-22
It has been confirmed that the current 100% non-domestic rates relief for occupied properties in the retail, hospitality, leisure and aviation sectors will be extended to include all of 2021-22.
EMPTY PROPERTY RELIEF
Relief is available to properties which are empty. The relevant levels of relief which apply are:
|Industrial||100% for first 6 months, 10% thereafter|
|Non-industrial||50% for first 3 months, 10% thereafter|
|RV <£1,700 or ‘exempt’ (listed building, prohibited by law from occupation etc)||100% permanent|
Please note that from 1 April 2020, the date used when calculating how long a property has been empty will now only change where a previously empty property is reoccupied for at least 6 months rather than the previous occupancy period of 6 weeks.
SMALL BUSINESS BONUS RELIEF
From 1 April 2020, Small Business Bonus Relief (SBBR) is only available to properties which are occupied. Properties which are unoccupied may instead be entitled to Empty Property Relief per above or any other reliefs which may be suitable.
If the Rateable Value of your occupied property is £18,000 or less, and the total Rateable Value of all your properties in Scotland is less than £35,000, you may be entitled to Small Business Bonus Relief. The level of Relief due is based on the Rateable Value of each property
Cumulative Rateable Value Range
|Up to £15,000||100%|
|£15,001 to £18,000||25%|
|£18,001 to £35,000* *multiple properties||25% on each individual property with a Rateable Value of £18,000 or less|
DAY NURSERY RELIEF
From 1 April 2018, properties which are used as day nurseries will be able to claim Day Nursery Relief. This is a reduction to the Rates charge of 100%. This relief has been extended to at least 30 June 2023.
BUSINESS GROWTH ACCELERATOR
Unoccupied new buildings entered onto the valuation roll may receive 100% relief from rates for up to 3 years. Where a property is already on the valuation roll and the Rateable Value increases after 1/4/20 as a result of the property being expanded, improved or due to a change of use, rates may be capped at the former value for a period of 12 months.
FRESH START RELIEF
Businesses occupying certain long-term empty properties may be entitled to relief for up to twelve months from the date they have occupied the premises. Relief of 100% is available where a property is occupied after being vacant for 6 months or more up to a Rateable Value of £95,000.
Following the Rates revaluation which took effect from 1 April 2017, properties used for certain purposes and with a Rateable Value of less than £1,500,000 may continue to be entitled to a level of Transitional Relief for 2021/2022 financial year.
RESTRICTION OF RELIEF
The Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2021 published in March set out the new limits on specific discretionary reliefs now we are no longer subject to EU state aid laws. This sets a limit of £325,000 over the current year and 2 preceding (in the same way as previous EU state aid). Any de minimis state aid received over the last 2 years counts towards this total. The current reliefs this relates to are: Renewable Energy, Enterprise Areas, Telecommunication, Rural, District Heating, Transitional and Day Nursery.
Other reliefs (notably retail, hospitality, leisure and aviation relief) are not covered by this restriction although local authorities do need to take account of international treaties when awarding them. How this should work in practice is currently under consultation.
APPEALING AGAINST THE RATEABLE VALUE OF YOUR PROPERTY
You can appeal your Rateable Value within six months of buying or becoming responsible for a property or, within six months of the date of the Valuation Notice where the City Assessor alters the Valuation Roll by making a new entry or changing the value.
You must continue to pay your rates instalments until the Assessor has considered your appeal.
APPEALING AGAINST INCORRECT ASSESSMENT OF RATES
If you wish to appeal on the grounds that Rates levied have been incorrectly calculated or applied, submit this in writing within 28 days of receipt of the bill.