Regulation 16 Amendment of the New and Improved Property Relief RegulationsI1

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 “or 10B” substitute “, 10B or 10C”.

After regulation 10B^f1 insert—

“Relief granted – financial year 2026-2027 – lands and heritages in respect of which a relevant increase has been made within the previous 12 months

10C.

(1)

In relation to the financial year 2026-2027 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 2026 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 2026 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 2026 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 2026 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 2026 Regulations,

• 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,

• RV is the rateable value of the lands and heritages on 1 April 2026, and

• F1X is—

  1. (i)

     1.150 where—

     1. (aa)

        the lands and heritages are used on the day wholly or mainly as self-catering holiday accommodation, regardless of their rateable value,

     2. (bb)

        a short-term let licence has been obtained in accordance with article 4 of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022, and

     3. (cc)

        an application for relief has been made in accordance with regulation 15 of the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2026,

  2. (ii)

     where the conditions in (i) are not met—

     1. (aa)

        1.500 where at revaluation on 1 April 2026 the lands and heritages had a rateable value of more than £100,000,

     2. (bb)

        1.300 where at revaluation on 1 April 2026 the lands and heritages had a rateable value of more than £20,000, up to and including £100,000,

     3. (cc)

        1.150 where at revaluation on 1 April 2026 the lands and heritages had a rateable value of £20,000 or less.

(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 2026 Regulations” means the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2026^f2.”.

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