Regulation 14 Cap for eligible propertiesI1

Scotland

(1)

Subject to paragraph (8), this regulation applies where—

(a)

the liability of a ratepayer to pay rates in respect of particular lands and heritages was reduced by any of the following as at 31 March 2026—

(i)

regulation 3 (amount payable as rates – lands and heritages with a rateable value of £20,000 or less) F1or regulation 4 (lands and heritages with rateable value of £35,000 or less (multiple entries)) of the 2025 Regulations,

(ii)

paragraph 3 or 4^f1 of schedule 2 of the 1997 Act (relief from non-domestic rates for general stores etc. in rural settlements: Scotland), where entitlement to the reduction is lost on 1 April 2026 as a result of an increase in rateable value of the lands and heritages above the limit provided for in—

(aa)

article 3(1)(a) or, as the case may be, article 3(1)(b) of the 2005 Order, or

(bb)

article 3(2) of the 2005 Order,

(iii)

regulation 4 (relief for lands and heritages used for hospitality purposes) of the Non-Domestic Rates (Hospitality Relief) (Scotland) Regulations 2025^f2, or

(b)

regulation 14 of the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2025^f3 applied as at 31 March 2026, and

(c)

in either case, the ratepayer continues to be liable to pay rates in respect of those particular lands and heritages.

(2)

Where the net notional liability of any lands and heritages to which this regulation applies, calculated in accordance with paragraph (3), is more than the transitional limit for those lands and heritages, calculated in accordance with paragraph (4), the amount payable as rates in respect of those lands and heritages is that transitional limit.

(3)

The net notional liability of any lands and heritages to which this regulation applies on any day is equal to the notional liability calculated in accordance with regulation 8, after any reliefs have been applied, including under regulation 7.

(4)

In respect of lands and heritages to which this regulation applies, the transitional limit, on any day, is to be calculated as follows:

(a)

where the rateable value for that day exceeds the rateable value at revaluation on 1 April 2026, the transitional limit is calculated in accordance with the formula—

\frac{D A \pm ((N N L - D A) \times 0.25) \pm (((C R V - R V) \times P F) - A) \times (100 % - Z)}{365}

(b)

in any other case the transitional limit is calculated in accordance with the formula—

\frac{(D A \pm (N N L - D A) \times 0.25) \times C R V}{365 \times R V}

where—

A is the amount of relief granted under regulation 10C of the New and Improved Property Relief Regulations in respect of the day with reference to which the transitional limit is calculated, multiplied by 365,
CRV is the rateable value of the lands and heritages on the day with reference to which the transitional limit is calculated,
DA is the deemed amount within the meaning given in paragraph (5),
PF is the poundage figure of—
1. (i)
  0.548 where the lands and heritages have a rateable value exceeding £100,000,
2. (ii)
  0.535 where the lands and heritages have a rateable value exceeding £51,000 but not exceeding £100,000,
3. (iii)
  0.481 where the lands and heritages have a rateable value of £51,000 or less,
NNL is the net notional liability referred to in paragraph (3),
RV is the rateable value of the lands and heritages on 1 April 2026, and
Z is the percentage of relief other than relief under regulation 10C of the New and Improved Property Relief Regulations granted in respect of the day with reference to which the transitional limit is calculated.

(5)

For the purposes of this regulation the deemed amount in respect of any lands and heritages is the amount which would have been payable as rates in respect of those lands and heritages for the financial year ending 31 March 2026, had that amount been calculated on the basis of the rateable value of the lands and heritages on 31 March 2026, including any additional amounts of rates payable in terms of regulation 5 (amount payable as rates – lands and heritages with rateable value exceeding £51,000 but not exceeding £100,000) or 6 (lands and heritages with rateable value exceeding £100,000) of the 2025 Regulations, and after applying any reliefs.

(6)

Where regulation 7 has effect as regards the lands and heritages, the question of whether the transitional limit applies is to be determined by reference to the amount of rates payable after regulation 7 is applied.

(7)

Relief under this regulation may only be granted where an application is made in accordance with regulation 15.

(8)

This regulation does not apply to lands and heritages which are wholly or mainly used for a purpose for which a short-term let licence is required in accordance with article 4 of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022^f4, but for which no such licence has been obtained.

(9)

In this regulation “the 2005 Order” means the Non-Domestic Rating (Rural Areas and Rateable Value Limits) (Scotland) Order 2005^f5.

Annotations

Textual amendments

F1: Words in reg. 14(1)(a)(i) inserted (31.3.2026) by The Non-Domestic Rates (Miscellaneous Amendment) (Scotland) Regulations 2026 (S.S.I. 2026/135), regs. 1, 4(3)

Commencement

I1: Reg. 14 in force at 1.4.2026, see reg. 1

Footnotes

f1: Paragraph 3 was amended by paragraph 25 of schedule 8 of the Postal Services Act 2000 (c. 26), section 29(a), (b) and (c) of the Local Government in Scotland Act 2003 (asp 1) and paragraph 148(a) and (b) of schedule 12 of the Postal Services Act 2011 (c. 5). Paragraph 4 was amended by section 28(4)(a), (b) and (d) of the Local Government in Scotland Act 2003 (asp 1).
f2: S.S.I. 2025/40.
f3: S.S.I. 2025/39.
f4: S.S.I. 2022/32. Article 4 was amended by S.S.I. 2024/227.
f5: S.S.I. 2005/103. Article 3 was amended by S.S.I. 2010/37.