The Non-Domestic Rates (Levying) (Scotland) Regulations 2003

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 2003-2004 (“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 2003. The Part only applies where certain provisions of the Non-Domestic Rates (Levying) (Scotland) Regulations 2002 (“the 2002 Regulations”) apply to the property as regards 31st March 2003. 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 (regulation 6). The amount payable as rates is calculated in accordance with regulation 7. For every day of the relevant year, the notional rates liability for a property (essentially, the full amount ordinarily payable as rates) (regulation 8) must be compared against the amount payable as rates for that property. Regulation 9 specifies how the amount of rates payable are to be recalculated in cases where the rateable value of property changes during the relevant year. Regulation 10 specifies how the amount of rates payable are to be recalculated in cases where the rateable value of the property is reduced on 1st April 2003.

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 the 2002 Regulations or 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 (regulation 11). That amount is calculated by multiplying or apportioning, 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 12 and 13). Regulation 14 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 provides for a new general reduction in rates for properties with a rateable value of £10,000 or less. Regulation 15 provides for a reduction on a sliding scale of between 10 per cent and 50 per cent on the rates payable where the cumulative rateable value of the property occupied by the ratepayer is less than £7,000. Where the amount of rates payable in respect of property to which this Part applies falls to be reduced by virtue of any of the enactments listed at regulations 17(1)(a) and 18(1)(a) or is determined in accordance with sections 6(1) and 7B(2) of the Valuation and Rating (Scotland) Act 1956 then the reduction on the rates payable is restricted to 5 per cent. Where the cumulative value of the property occupied by the ratepayer is £7,000 or above but includes lands and heritages which are valued at £10,000 or under then the reduction on the rates payable on the said lands and heritages is restricted to 5 per cent. Where Regulation 15 has effect, the reduction in the rates payable shall be applied to the amount payable as determined under Part II or III.

Part V provides for a new general increase in rates for properties with a rateable value of more than £25,000.

Part VI deals with reductions, remissions and exemptions. Regulations 17 and 18 provide for reductions under other enactments to apply in cases where the amount payable is determined under Part II, III in the same way as they apply in cases where these Regulations do not have effect. 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 19).

Part VII revokes the 2002 Regulations.