The Non-Domestic Rating (Unoccupied Property) (Scotland) Amendment Regulations 2013

Citation and commencement

1.  These Regulations may be cited as the Non-Domestic Rating (Unoccupied Property) (Scotland) Amendment Regulations 2013 and come into force on 1st April 2013.

Amendment of the Non-Domestic Rating (Unoccupied Property) (Scotland) Regulations 1994

2.  The Non-Domestic Rating (Unoccupied Property) (Scotland) Regulations 1994(1) are amended as follows.

3.  In regulation 1(2) (interpretation) after the definition of “retail lands and heritages” insert—

““use as office premises” means that the sole or principal use of the lands and heritages takes place there in a building or part of a building that is used wholly or mainly for the purposes of administration, clerical work or handling money, and for these purposes “clerical work” includes writing, book-keeping, sorting papers, filing, data processing, drawing and the editorial preparation of material for publication; and

“use as shop premises” means that the sole or principal use of the lands and heritages takes place there in a building or part of a building that is used wholly or mainly for the retail sale of goods to members of the public who visit the building to buy goods for consumption or use elsewhere, whether or not by the buyer, for purposes unconnected with a trade or business.”.

4.  For regulation 2 (rating of unoccupied lands and heritages) substitute—

“Rating of lands and heritages that are unoccupied, or treated as unoccupied

2.— (1) The following are prescribed as classes of lands and heritages under section 24(2) of the 1966 Act—

(a) all relevant lands and heritages which have been unoccupied for a continuous period of more than three months, other than lands and heritages to which any of the conditions specified in Parts 1, 1A and 2 of the Schedule applies; or

(b) all lands and heritages that are, by virtue of regulation 4, to be treated as unoccupied for the purposes of section 24 of the 1966 Act.

(2) For the purposes of paragraph (1)(a), in determining the period during which relevant lands and heritages have been continuously unoccupied, they are to be regarded as having been occupied in any period during which any of the conditions in Parts 1, 1A and 2 of the Schedule applied to them, and they are to be regarded as having been unoccupied during any period of occupation—

(a) that ends within 6 weeks of beginning; or

(b) in which the lands and heritages were, by virtue of regulation 4, treated as unoccupied.

(3) 90% is the percentage prescribed under section 24(3) of the 1966 Act in relation to the class prescribed by paragraph (1)(a).”.

5.  After regulation 3(2) (rating of partly unoccupied lands and heritages) insert—

“(3) The percentage prescribed under section 24A(4)(b)(ii) of the 1966 Act is 90%.”.

6.  After regulation 3 insert—

“Lands and heritages to be treated as unoccupied

4.— (1) The class of lands and heritages prescribed under section 24B(3) of the 1966 Act is all lands and heritages in respect of which the following conditions are met—

(a) for a continuous period of 12 months immediately prior to being occupied the person or persons entitled to possession of the lands and heritages during that period were in receipt of relief under section 24 of the 1966 Act;

(b) either—

(i) when last previously occupied, the lands and heritages were in use as office premises or in use as shop premises, or

(ii) where the lands and heritages have never previously been occupied, they are in use as office premises or in use as shop premises;

(c) the rateable value of the lands and heritages is no greater than £45,000;

(d) no other reduction is being made to the liability of the person entitled to possession of the lands and heritages to pay rates;

(e) no longer than 12 months have elapsed since the lands and heritages became occupied; and

(f) the person entitled to possession of the lands and heritages has submitted an application to the rating authority in whose valuation roll the entry for the lands and heritages appear, requesting that they are treated as unoccupied, along with such information as is necessary for that authority to establish that the conditions in this regulation are met.

(2) Rate relief may be granted in consequence of paragraph (1) only to the extent that such relief is compatible with article 107(1) of the Consolidated Version of the Treaty on the Functioning of the European Union(2).

(3) No rate relief may be granted in consequence of paragraph (1) in respect of any liability that relates to a day falling on or after 1st April 2016.”.

7.  After Part 1 of the Schedule insert—

“PART 1A

The conditions specified in this Part are that—

(a) an entry is made in respect of relevant lands and heritages onto the valuation roll made up under section 1 of the Local Government (Scotland) Act 1975(3) on or after 1st April 2013, but no later than 31st March 2016, in pursuance of section 2(1)(b) of that Act (entries as a result of lands and heritages having come into existence or occupancy);

(b) the entry is not made as a result of—

(i) the combination or division of lands and heritages which are already entered on that valuation roll, in whole or in part; or

(ii) the refurbishment or change of use of an existing building (and for these purposes a building includes domestic property and a building on relevant lands and heritages which are exempt from a requirement to pay rates);

(c) the lands and heritages are unoccupied at the time the entry is made;

(d) any rate relief granted in consequence of this Part would not be incompatible with article 107(1) of the Consolidated Version of the Treaty on the Functioning of the European Union;

(e) the person entitled to possession of the lands and heritages has submitted an application to the rating authority in whose valuation roll the entry for the lands and heritages appear, requesting that this Part apply to the lands and heritages, along with such information as is necessary for that authority to establish that the conditions in paragraphs (b) to (d) are met;

(f) the application for this Part to apply to the lands and heritages relates to a day in the financial years 2013/14 to 2017/18;

(g) where the authority referred to in paragraph (e) has requested further information to establish that the condition in paragraph (d) continues to be met, the person entitled to possession of the lands and heritages has supplied that information to the satisfaction of that authority; and

(h) where an application has been granted to apply this Part to the lands and heritages, no longer than 15 months have elapsed since they were entered onto the valuation roll as referred to in paragraph (a), or where the lands and heritages have been occupied for some or all of that 15 month period, no longer than a period of 15 months plus the period or periods of occupation have so elapsed.”.

DEREK MACKAY

Authorised to sign by the Scottish Ministers

St Andrew’s House,

Edinburgh

6th February 2013