# The Non-Domestic Rates (Levying) (Scotland) Regulations 1990, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations make provision as to the rateable value in accordance with which the non-domestic rate will be levied for the financial year 1990-91.
Regulation 3 provides that the non-domestic rate should be levied in the normal way according the the rateable value appearing in the valuation roll, except in the case where a notional rateable value is determined for any lands and heritages to which regulation 4 applies, in which case it is to be levied according to that notional rateable value.
Regulation 4 makes provision for determining a notional rateable value of any lands and heritages to which that regulation applies in certain cases. Where the rateable value of those lands and heritages on 1st April 1990 is equal to or greater than “the upper limit”, then the notional rateable value for those lands and heritages is the upper limit. Correspondingly, where the rateable value for those lands and heritages on that date is equal to or lower than “the lower limit” then the notional rateable value is that “lower limit”.
The broad effect of “the upper limit” mentioned in regulation 4 is to provide that increases in rateable value resulting from the revaluation of non-domestic property effective from 1st April 1990 will, for the purpose of determining the non-domestic rate bill, be no greater than 20 per cent in excess of the average increase in rateable values for all lands and heritages, or 15 per cent in the case of those lands and heritages with rateable values on 1st April 1990 of less than £10,000. This has the effect of limiting increases in non-domestic rate bills resulting purely from the revaluation to 20 per cent or 15 per cent, depending upon whether the rateable value of the lands and heritages is £10,000 or more, or is less than £10,000.
The loss in non-domestic rate income resulting from the application of these upper limits is offset by placing lower limits below which rateable values cannot fall on revaluation for the purpose of determining non-domestic rate bills. Again, the “lower limit” for lands and heritages with rateable values on 1st April 1990 of less than £10,000 is more advantageous to the ratepayer than in the case of those with rateable values of £10,000 or more.
Regulation 5 provides that regulation 4 applies to any lands and heritages for which there is an entry in the valuation roll on both 31st March 1990 and 1st April 1990 and which are in the same occupation on both dates. Regulation 4 does not, however, apply to lands and heritages for which a rateable value is prescribed or determined under an order made under section 6 of the Local Government (Scotland) Act 1975, except in certain specified cases. Provision is also made as to when regulation 4 ceases to apply to lands and heritages.
The remaining provisions of the Regulations make special provision for cases–
(a) where the lands and heritages constitute part residential subjects either on 31st March 1990 or on 1st April 1990 or on both dates (regulations 6, 7 and 8); and
(b) where there is a notional rateable value determined for any lands and heritages and the actual rateable value of them is either increased or decreased with effect from a date later than 1st April 1990 (regulations 9 and 10).

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Source: https://www.legislation.gov.uk/uksi/1990/788/note (the official version)
Page: https://openlegislation.uk/non-domestic-rates-levying-scotland-regulations-1990/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.