Regulation 16 Amendment of the New and Improved Property Relief Regulations

The New and Improved Property Relief Regulations are amended in accordance with paragraphs (2) to (5).

In regulation 9(1) (availability of relief – lands and heritages in respect of which a relevant increase has been made within the previous 12 months) for “Regulations 10” substitute “Regulations 10, 10A, 10B”.

In regulation 10A(5) (relief granted – financial year 2024-2025- lands and heritages in respect of which a relevant increase has been made within the previous 12 months)^f1 for “calculated in accordance with regulation 9 of those Regulations” substitute “described in that regulation”.

After regulation 10A^f2 insert—

“Relief granted – financial year 2025-2026 – lands and heritages in respect of which a relevant increase has been made within the previous 12 months

10B.

(1)

In relation to the financial year 2025-2026 the relief granted is that the amount of non-domestic rates payable is to be reduced as set out in paragraph (4) or, as the case may be, paragraph (5).

(2)

The amount of relief granted depends on—

(a)

whether regulation 7 of the 2025 Regulations applies (transitional relief in the amount of rates payable),

(b)

the total amount of any relevant increases made in respect of the lands and heritages taking effect on a day within the previous 12 months (“the reference amount”).

(3)

No relief is granted unless an application is made in accordance with regulation 12.

(4)

Where regulation 7 of the 2025 Regulations does not apply to the lands and heritages—

(a)

the amount of non-domestic rates payable is to be calculated on the rateable value minus the reference amount, but

(b)

if the rateable value minus the reference amount is a negative figure, then no relief is granted (and the amount of non-domestic rates payable is to be calculated on the rateable value).

(5)

Where regulation 7 of the 2025 Regulations applies, the amount of non-domestic rates payable is the transitional limit described in that regulation, and for these purposes the transitional limit is to be calculated—

(a)

in respect of the lands and heritages for which the rateable value exceeds the sum of the rateable value on 1 April 2023 and the reference amount, in accordance with the formula—

$$\frac{\left(\left(BL\times X\right)\pm \left(\left(ARV-RV\right)\times \text{PF}\right)\right)}{365}$$

where—

• ARV is the adjusted rateable value, found by subtracting the reference amount from the rateable value of the land and heritages,

• BL is the base liability of the lands and heritages calculated in accordance with regulation 10 of the 2025 Regulations,

• PF is the poundage figure of—

  1. (i)

     0.568 where the lands and heritages have a rateable value exceeding £100,000,

  2. (ii)

     0.554 where the lands and heritages have a rateable value exceeding £51,000 but not exceeding £100, 000,

  3. (iii)

     0.498 where the lands and heritages have a rateable value of £51,000 or less,

• RV is the rateable value of the lands and heritages on 1 April 2023, and

• X is—

  1. (i)

     5.113 where at revaluation on 1 April 2023 the lands and heritages had a rateable value of more than £100,000,

  2. (ii)

     3.281 where at revaluation on 1 April 2023 the lands and heritages had a rateable value between £20,001 and £100,000,

  3. (iii)

     1.933 where at revaluation on 1 April 2023 the lands and heritages had a rateable value of £20, 000 or less, or

(b)

in any other case in accordance with the formula—

$$\frac{\left(BL\times X\times ARV\right)}{365\times RV}$$

where—

• BL, ARV, RV and X have the same meanings as in sub-paragraph (a).

(6)

In this regulation, “the 2025 Regulations” means the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2025^f3.”.

In regulation 11 (additional relief granted – lands and heritages in respect of which a relevant increase has been made within the previous 12 months)—