Explanatory note

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.