The Non-Domestic Rating (Unoccupied Property) (Scotland) Amendment Regulations 2022

Citation and commencement

1.  These Regulations may be cited as the Non-Domestic Rating (Unoccupied Property) (Scotland) Amendment Regulations 2022 and come into force on 1 April 2022.

Amendment of the Non-Domestic Rating (Unoccupied Property) (Scotland) Regulations 2018

2.—(1) The Non-Domestic Rating (Unoccupied Property) (Scotland) Regulations 2018(1) are amended as follows.

(2) In regulation 2 (rating of unoccupied lands and heritages)—

(a) at the beginning of paragraph (1)(a)(ii) insert “except where paragraph (1B) applies,”,

(b) after paragraph (1) insert—

“(1A) Paragraph (1B) applies only to lands and heritages which are let under a lease agreement and which subsequently—

(a) become unoccupied within the period of 6 months beginning with the date on which the lands and heritages first became occupied under that lease, and

(b) become unoccupied on or after 1 April 2022.

(1B) Where the condition specified in paragraph (d) or (e) of Part 1 of the schedule would apply to such lands and heritages but for this paragraph, neither condition is to be regarded as applying if—

(a) the rent charged for the lands and heritages is significantly below the level of the rent which could reasonably have been obtained for the lands and heritages at the time the lease was entered into, in all the circumstances,

(b) payment of the rent is optional in terms of the relevant lease, or

(c) any arrangements made to fulfil the condition specified in paragraph (d) or (e) of Part 1 of the schedule are identified in the lease as being for the purpose of mitigating rates liability.

(1C) Paragraphs (1A) and (1B) do not prevent a rating authority making, and are without prejudice to the application of, any scheme under section 3A of the Local Government (Financial Provisions etc.) (Scotland) Act 1962(2) (schemes for reduction and remission of rates) which provides for the rates leviable in respect of the lands and heritages to be reduced or remitted by virtue of the lands and heritages being unoccupied.”.

(3) In regulation 3 (rating of lands and heritages unoccupied for a short time)—

(a) at the beginning of paragraph (1)(a)(ii) insert “except where paragraph (1B) applies,”,

(b) after paragraph (1) insert—

“(1A) Paragraph (1B) applies only to lands and heritages which are let under a lease agreement and which subsequently—

(a) become unoccupied within the period of 6 months beginning with the date on which the lands and heritages first became occupied under that lease, and

(b) become unoccupied on or after 1 April 2022.

(1B) Where the condition specified in paragraph (d) or (e) of Part 1 of the schedule would apply to such lands and heritages but for this paragraph, neither condition is to be regarded as applying if—

(a) the rent charged for the lands and heritages is significantly below the level of the rent which could reasonably have been obtained for the lands and heritages at the time the lease was entered into, in all the circumstances,

(b) payment of the rent is optional in terms of the relevant lease, or

(c) any arrangements made to fulfil the condition specified in paragraph (d) or (e) of Part 1 of the schedule are identified in the lease as being for the purpose of mitigating rates liability.

(1C) Paragraphs (1A) and (1B) do not prevent a rating authority making, and are without prejudice to the application of, any scheme under section 3A of the Local Government (Financial Provisions etc.) (Scotland) Act 1962 which provides for the rates leviable in respect of the lands and heritages to be reduced or remitted by virtue of the lands and heritages being unoccupied.”.

TOM ARTHUR

Authorised to sign by the Scottish Ministers

St Andrew’s House,

Edinburgh

8th February 2022