{
  "url": "https://openlegislation.uk/non-domestic-rates-transitional-relief-scotland-regulations-2025/note",
  "json_url": "https://openlegislation.uk/non-domestic-rates-transitional-relief-scotland-regulations-2025/note.json",
  "legislation": "ssi/2025/39",
  "legislation_title": "The Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2025",
  "legislation_url": "https://openlegislation.uk/non-domestic-rates-transitional-relief-scotland-regulations-2025",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nThese Regulations make provision as to the amount payable in certain circumstances as non-domestic rates in Scotland. They apply to the financial year 2025-2026. The Regulations do not apply where a non-domestic property is shown in a merged, split or reorganised entry in the valuation roll which takes effect during the financial year 2025-2026.\nPart 1 makes provision as to citation, commencement and interpretation.\nPart 2 deals with amounts payable in respect of lands and heritages which were shown in the valuation roll as at 31 March 2023 and 1 April 2023 (i.e. that were on the valuation roll at the end of the 2022-23 financial year and the beginning of the 2023-24 financial year). Regulation 7 provides that, for every day of the financial year 2025-26, the notional rates liability for a non-domestic property (that is, the gross amount ordinarily payable as rates before any reliefs are applied, calculated in accordance with regulation 8) must be compared against that property’s transitional limit, calculated in accordance with regulation 9. If the notional liability is more than the transitional limit, the amount payable will be capped at the transitional limit. The transitional limit is calculated by multiplying the base liability of the lands and heritages, calculated under regulation 10, by whichever is the appropriate factor as provided for by regulation 9.\nPart 3 deals with the interaction between the transitional relief provided for in Part 2 with other reductions, remissions and exemptions. Regulation 11 provides that where any relief from liability to non-domestic rates applies (other than relief under Part 2), and provided regulation 12 does not apply, the amount payable is to be determined by first calculating the amount payable in accordance with regulation 7 and then applying the reduction specified in the enactment referred to in paragraph (1)(a) to that amount. In other words, where there is an entitlement to relief under both this regulation and regulation 7, relief under this regulation is to be applied to the amount of rates payable after regulation 7 is applied.\nRegulation 12 provides for calculation of rates liability in respect of lands and heritages which are partially unoccupied, and to which regulation 7 applies, where there is an apportionment between the rateable value of the parts of the lands and heritages which are occupied, and those which are unoccupied. In determining liability, the rateable value is taken to be the figure attributed only to the part of the property which is occupied.\nIn terms of regulation 13, nothing in the Regulations requires the payment of rates on property on a day on which it is entirely exempt from rates under any other enactment, or prejudices the power of a rating authority to grant discretionary reductions or remissions.\nPart 4 (regulation 14) provides for a cap on increases in rates liability on certain lands and heritages in respect of which there was entitlement either to relief under regulation 3 of the Non-Domestic Rates (Levying and Miscellaneous Amendment) (Scotland) Regulations 2022 (known as small business bonus scheme relief) or to relief under schedule 2 of the Local Government and Rating Act 1997 (rural property relief) as at 31 March 2023. In relation to rural property relief, the cap applies only where entitlement to the relief was lost on 1 April 2023 as a result of an increase in rateable value taking it above the applicable limits in article 3 of the Non-Domestic Rating (Rural Areas and Rateable Value Limits) (Scotland) Order 2005. The cap can be relied upon as an alternative to reliance on regulation 7. Alternatively, where it is in the ratepayer’s interests to rely on both regulations 7 and 14, regulation 14(6) provides that relief under regulation 14 is to be applied to the rates liability arrived at through applying regulation 7.\nPart 5 deals with general matters. Regulation 15 provides the process for making an application for relief. An application is required for relief under regulation 14, unless relief under the equivalent provisions of the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2023 has been granted in respect of the financial year 2023-2024 or relief under the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2024 in respect of the financial year 2024-2025. In that case no application for relief is required in respect of the financial year 2025-2026.\nRegulation 16 makes amendments to the Non-Domestic Rates (Relief for New and Improved Properties) (Scotland) Regulations 2022 (“the 2022 Regulations”), to reflect the interaction between transitional relief and new and improved property relief. Regulation 16(3) clarifies how the transitional limit is to be calculated, in relation to the financial year 2024-2025, where new and improved property relief is granted in relation to a property to which the transitional limit applies. Regulation 16(4) inserts a new regulation 10B into the 2022 Regulations. This makes provision as to how the transitional limit is to be calculated in relation to the financial year 2025-2026 where relief is granted to properties improved by refurbishment, expansion or construction. Regulations 16(2) and (5)(a) and (b) make consequential changes to regulations 9 and 11 of the 2022 Regulations, to reflect the insertion of regulation 10B and the earlier insertion of regulation 10A. Regulation 16(5)(c) updates the list of provisions in regulation 11(3), to be used to calculate entitlement to relief additional to that provided for by regulations 10, 10A and 10B.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ssi/2025/39/note",
    "retrieved_at": "2026-10-28T20:36:58.776367+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}