Scotland’s non-domestic rates reliefs

Business rates is the commonly used term for non-domestic property rates. Business rates are charged on most non-domestic premises, including most commercial properties such as shops, offices, pubs, warehouses and factories. Some properties are eligible for discounts from the local council on their business rates. This is called non-domestic property rates relief or business rates relief. 

In Scotland, there are a number of reliefs available including Small Business Bonus Scheme, reliefs for empty or newly re-occupied properties and charitable rate relief. Businesses need to apply to their local council for relief. 

Business rates relief through the Small Business Bonus Scheme (SBBS) scheme is available if the combined rateable value of all business premises is £35,000 or less, if the rateable value of individual premises is £18,000 or less and the property is actively occupied.

Empty properties in Scotland can receive 50% rates relief for the first 3 months they are empty. They can then claim a further 10% discount.

Empty industrial properties can qualify for 100% relief from non-domestic rates for the first 6 months that they are empty. They can then claim a further 10% discount. It is also possible, under certain circumstances, to receive 100% relief for the time a property is unoccupied, for example, if it is a listed building. 

Registered charities in Scotland can apply for 80% rates relief. This only applies if their property is mostly used for charitable purposes. Certain councils may also offer up to 20% additional relief on top of the 80%, meaning that no rates would be payable. There are similar provisions for registered Community Amateur Sports Clubs.

Rates reliefs are handled differently in England, Wales and Northern Ireland.

Source: The Scottish Government Tue, 14 Feb 2023 00:00:00 +0100

More Posts

Breaking even – checking the numbers

In previous newsfeeds we have described how you can calculate the level of turnover you need to create in order to meet all your costs whether they be fixed costs (rent, rates etc.,) or variable costs (goods you need to buy to convert into goods you sell).

For example, if your fixed costs are £50,000 per annum and your variable costs are 25% of your turnover, the annual turnover you need to breakeven will be £200,000. The formula is:

Annual fixed costs divided by 25 (the gross profit)

Bereavement Support Payment

The amount of Bereavement Support Payment you can claim will depend on your relationship to the person who died and when you make your claim.

Your payments will be paid into your bank, building society or credit union account.

If you were married or in a registered civil partnership with the person who died

If you were receiving Child Benefit when your partner died (or did not get it but were entitled to it), you will get the higher rate.

This is made up of:

a first payment of £3,500;

Tax codes for employees

The P9X form is used to notify employers of the tax codes to use for employees. The latest version of the form has been published and shows the tax codes to use from 6 April 2023. The form states that the basic personal allowance for the tax year starting 6 April 2023 will, as expected, be £12,570 (£12,570 in 2022-23) and this means that the tax code for emergency use will remain at 1257L.

The basic rate limit will be £37,700 (£37,700 in 2022-23) except for those defined as Scottish taxpayers

Properties not let at commercial rates

There are special rules where a property is let at less than a commercial rate or isn’t let on commercial terms. These rules also apply if a property is occupied rent free or at less than a commercial rate, for example, a property is occupied by a family member at a reduced or nil rent.

In these circumstances, HMRC can take the view that unless the landlord charges a full market rent for a property and imposes normal market lease conditions, it is unlikely that the expenses of the property are

Send Us A Message