The Non-Domestic Rates (Levying and Miscellaneous Amendment) (Scotland) Regulations 2025

These Regulations make provision as regards the amount payable as non-domestic rates in certain circumstances in respect of certain non-domestic properties in Scotland. For the financial year 2025-2026, the non-domestic rate poundage is fixed by the Non-Domestic Rate (Scotland) Order 2025 (S.S.I. 2025/37).

These Regulations also revoke certain Regulations that provided non-domestic rates relief as part of the Scottish Government’s response to the Covid-19 pandemic, with savings provisions in relation to applications made for the relevant reliefs on or before 1 April 2025.

Part 2 contains provisions in respect of the levying of non-domestic rates for certain types of property. Regulations 3 to 7 apply to the financial year 2025-2026.

Regulation 3 provides for a reduction in the amount of rates otherwise payable in respect of non-domestic properties which comprise only one entry in the valuation roll and have a rateable value of less than £20,000. However, where the enactments listed in regulation 3(4)(a) or a determination mentioned in regulation 3(4)(b) also provide for a reduction in rates liability, the rate relief provided under regulation 3(3) is reduced by a corresponding amount. Regulation 3(5) provides that regulation 3 does not apply to, and therefore no relief is granted in respect of, lands and heritages that are receiving relief on account of being unoccupied or that are wholly or mainly used for certain purposes, including as parking spaces or for payday lending.

Regulation 4 also provides for a reduction in the amount of rates otherwise payable in respect of non-domestic properties which comprise more than one entry in the valuation roll, and cumulatively have a rateable value of no more than £35,000. In a similar way to regulation 3(4), regulation 4(4) provides for a reduction in the rate relief provided under regulation 4(3) if the enactments listed in regulation 4(4)(a) or a determination mentioned in regulation 3(4)(b) also provide for a reduction. Regulation 4(5) makes similar provision to regulation 3(5) excluding certain properties from relief.

Regulation 5 provides for an additional amount to the amount of rates otherwise payable in respect of lands and heritages with a rateable value exceeding £51,000, but not exceeding £100,000, and sets out a formula for the calculation of that amount. It also sets out certain situations where no additional amount is payable.

Regulation 6 provides for an additional amount to the amount of rates otherwise payable in respect of lands and heritages with a rateable value exceeding £100,000, and sets out a formula for the calculation of that amount. As with regulation 5, regulation 6 also sets out certain situations where no additional amount is payable.

Regulations 5(6) and 6(7) provide that the provision for an additional amount does not over-ride any provision for non-domestic rates relief.

Regulation 7 provides for 100% relief on non-domestic rates liability, for a period of 12 months, on non-domestic properties which become re-occupied immediately after having been unoccupied for a period of at least 6 months and where the rateable value does not exceed £100,000. The relief will cease to apply where the lands and heritages become unoccupied again during the 12 month period. It will not apply where the lands and heritages are used wholly or mainly for payday lending.

Regulation 8 provides that nothing provided for in relation to levying in Part 2 cuts across any complete exemption from liability to pay rates, nor prevents a rating authority from granting a discretionary reduction or remission of rates under specified provisions. Similarly, a local authority is not prevented from issuing a ratepayer with a notice under section 20 of the Non-Domestic Rates (Scotland) Act 2020. Such a notice can be served by a local authority on a ratepayer who is in receipt of a relief, other than unoccupied property relief (under section 24A of the 1966 Act), if the local authority considers that either the lands and heritages are not being used or that they are being used only minimally and the ratepayer’s main reason for not leaving the lands and heritages empty is to obtain the greater amount of relief available than if the lands and heritages were unoccupied.

Regulation 9 revokes the provisions in regulations 2 to 7 of the Non-Domestic Rates (Levying and Miscellaneous Amendment (Scotland) Regulations 2024, with a saving provision to preserve their operation in respect of the financial year 2024-25.

Part 3 contains miscellaneous revocations and amendments in respect of non-domestic rating regulations.