The Non-Domestic Rates (Hospitality Relief) (Scotland) Regulations 2025
Citation and commencement1.
These Regulations may be cited as the Non-Domestic Rates (Hospitality Relief) (Scotland) Regulations 2025 and come into force on 1 April 2025.
Interpretation2.
In these Regulations—
Applications for relief3.
(1)
An application for relief under these Regulations must—
(a)
be signed by the ratepayer or a person authorised to sign on behalf of the ratepayer, and
(b)
be made to the rating authority in whose roll the entry for the lands and heritages appears by—
(i)
addressing it to the authority, and
(ii)
delivering it or sending it to the authority’s office by post or electronic communication.
(2)
For the purposes of paragraph (1)—
“person authorised to sign on behalf of the ratepayer” means, where the ratepayer is—
(a)
a partnership, a partner of that partnership,
(b)
a trust, a trustee of that trust,
(c)
a body corporate, a director of that body,
Relief for lands and heritages used for hospitality purposes4.
(1)
A person liable to pay rates in respect of lands and heritages in the 2025-2026 financial year is entitled to the relief described in paragraph (3) where the conditions described in paragraph (2) are met.
(2)
The conditions are—
(a)
the lands and heritages are wholly or mainly used for a purpose specified in the classes in the schedule,
(b)
the lands and heritages have a rateable value of £51,000 or less,
(c)
the person is not granted relief in respect of the lands and heritages under regulation 4 (relief for lands and heritages used for hospitality purposes on islands and in specified remote areas) of the 2024 Regulations, and
(d)
an application for relief is made in accordance with regulation 3(1).
(3)
Subject to paragraphs (8) and (9), the relief is that the rates payable in respect of the lands and heritages for the day are reduced by an amount equivalent to 40% of the daily gross rates payable.
(4)
In this regulation “the daily gross rates payable” means, subject to paragraphs (5) to (7), the rateable value of the lands and heritages, multiplied by 0.498, and then divided by 365.
(5)
Where, in respect of any day on which a person is granted relief under this regulation—
(a)
the person is also granted relief under Part 3 (improved property) of the 2022 Regulations, and
(b)
regulation 7 (amount payable as rates) of the 2025 Regulations does not apply to the lands and heritages,
“the daily gross rates payable” means the rateable value of the lands and heritages minus the reference amount, multiplied by 0.498, and then divided by 365.
(6)
Where, in respect of any day on which a person is granted relief under this regulation—
(a)
the person is also granted relief under Part 3 of the 2022 Regulations, and
(b)
regulation 7 of the 2025 Regulations does apply to the lands and heritages,
“the daily gross rates payable” means the transitional limit calculated in accordance with regulation 10B(5) (relief granted – financial year 2025-2026- lands and heritages in respect of which a relevant increase has been made within the past 12 months) of the 2025 Regulations.
(7)
Where, in respect of any day on which a person is granted relief under this regulation—
(a)
the person is not granted relief under Part 3 of the 2022 Regulations, but
(b)
regulation 7 of the 2025 Regulations does apply to the lands and heritages,
“the daily gross rates payable” means the transitional limit calculated in accordance with regulation 9 (transitional limit) of the 2025 Regulations.
(8)
The maximum amount by which the liability of any person liable to pay rates may be reduced under this regulation is £110,000.
(9)
Relief granted by this regulation does not apply to the extent that it would reduce the rates payable to an amount less than nil.
(10)
Amendment of the Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 20235.
(1)
(2)
In regulation 3(2) (conditions on granting non-domestic rates relief)—
(a)
at the end of sub-paragraph (j) omit “and”,
(b)
“, and
(l)
regulation 4 of the Non-Domestic Rates (Hospitality Relief) (Scotland) Regulations 2025”.
Amendment of the Non-Domestic Rates (Islands and Remote Areas Hospitality Relief) (Scotland) Regulations 20246.
(1)
The 2024 Regulations are amended in accordance with paragraphs (2) and (3).
(2)
In regulation 4(1) (relief for lands and heritages used for hospitality purposes on islands and in specified remote areas) after “2024-2025” insert “or 2025-2026”
.
(3)
“Class 11 Small music venue
Use as a venue to host live music events where each of the following conditions is satisfied—
(a)
the premises are used as an indoor, permanent venue, operating all-year round,
(b)
the venue is used wholly or mainly to host live music events for a public audience, and
(c)
the venue has a maximum capacity of 1500 persons.”.
St Andrew’s House,
Edinburgh
SCHEDULESpecified Purposes
Class 1 Bed and breakfast accommodation
Use as bed and breakfast accommodation.
Class 2 Camping site
Use as a camping site.
Class 3 Caravan
Class 4 Caravan site
Class 5 Chalet, holiday hut and bothy
Use as a chalet, holiday hut or bothy.
Class 6 Guest house, hotel and hostel
Use as a guest house, hotel or hostel, where no significant element of care is provided.
Class 7 Public house
Use as a public house or nightclub where the following conditions are satisfied—
(a)
(b)
the premises are used for such sales to members of the public, principally for consumption on the premises, in accordance with the operating plan contained in the premises licence, and
(c)
the operating plan contained in the premises licence does not include any provision that such sales are made subject to those members of the public residing at, or consuming food on, the premises.
Class 8 Restaurant
Use for the sale of food or refreshments to members of the public for consumption on those premises, including any café, coffee shop, bistro, fast food restaurant or snack bar that is so used.
Class 9 Self-catering holiday accommodation
Use as self-catering holiday accommodation.
Class 10 Timeshare accommodation
Use as timeshare accommodation.
Class 11 Small music venue
Use as a venue to host live music events where each of the following conditions is satisfied—
(a)
the premises are used as an indoor, permanent venue, operating all-year round,
(b)
the venue is used to host live music events for a public audience, and
(c)
the venue has a maximum capacity of 1500 persons.
These Regulations make provision for relief from liability to pay non-domestic rates for lands and heritages used for certain purposes, for the financial year 2025-2026.
Regulation 3 makes provision for how an application to obtain the relief in regulation 4 must be made.
Regulation 4 and the schedule provide for relief in respect of use of lands and heritages wholly or mainly for hospitality purposes. The relief applies where no relief in respect of the lands and heritages is granted under regulation 4 of the Non-Domestic Rates (Islands and Remote Areas Hospitality Relief) (Scotland) Regulations 2024, which provide 100% relief to hospitality businesses in certain geographical areas, up to a maximum reduction of £110,000 in the rates liability of any particular ratepayer.
Regulation 4(3) sets out that in respect of any day in the financial year 2025-2026, the rates payable are reduced by an amount equivalent to 40% of the gross rates payable in respect of the lands and heritages for the day. Regulation 4(4) to (7) sets out how the figure to be taken to represent the gross rates payable in respect of a day is to be arrived at, this depending on whether or not relief under either or both of the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2025 and the Non-Domestic Rates (Relief for New and Improved Properties) (Scotland) Regulations 2022 is also granted, in addition to relief under these Regulations. The relief given to any particular ratepayer under these Regulations may, however, only reduce the liability of the ratepayer by a maximum of £110,000, and it may not reduce the amount of rates that are payable to less than nil.
Regulation 5 makes a consequential amendment to the non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2023, to add relief under regulation 4 of these Regulations to the list of reliefs, the award of which must be compatible with the Subsidy Control Act 2022 (c. 23).
Regulation 6 amends the Non-Domestic Rates (Islands and Remote Areas Hospitality Relief (Scotland) Regulations 2024 (“the 2024 Regulations”) so that the relief under the 2024 Regulations is available in relation to the financial year 2025-2026. There will, though, be nothing to prevent an application being made in respect of the financial year 2024-2025, during the course of the financial year 2025-2026. Regulation 6 also amends schedule 2 of the 2024 Regulations to include certain premises used as live music venues in the list of lands and heritages in respect of which relief is granted. This addition will apply with effect from 1 April 2025, and only in respect of the financial year 2025-2026.