Explanatory note

These Regulations make amendments to the Non-Domestic Rating (Unoccupied Property) (Scotland) Regulations 2018 (“the 2018 Regulations”).

Sections 24 and 24A of the Local Government (Scotland) Act 1966 provide as to the rating of unoccupied property and of property partially unoccupied for a short time. Where a property is completely unoccupied, no rates are payable except in the case of a property falling within a class prescribed by regulations. Where a property is partially unoccupied for a short time and the relevant rating authority requests the assessor to apportion the rateable value between the occupied and unoccupied parts, rates are only payable in respect of the value apportioned to the occupied part except in the case of a property falling within a class prescribed by regulations.

Regulations 2 and 3 of the 2018 Regulations prescribe classes of lands and heritages for these purposes. Exceptions are made for properties in relation to which conditions specified in the 2018 Regulations are met.

Regulation 2(2) amends regulation 2 of the 2018 Regulations in relation to the rating of unoccupied properties. It provides for a set of circumstances in which a condition involving liquidation or the winding up of a company or limited liability partnership is to be regarded as not applying. The amendments only apply to properties which are let under a lease agreement which become unoccupied on or after 1 April 2022 and within the period of 6 months beginning with the date on which the property first became occupied under the lease agreement. The amendments also apply only where, but for the amendments, the liquidation or winding up conditions would otherwise apply. In addition, at least one of three further indicators connected to reduction or mitigation of rates liability must also be established.

Regulation 2(3) amends regulation 3 of the 2018 Regulations, with similar effect in relation to the rating of property partly unoccupied for a short time.

In situations in which the amendments apply, the effect will be that the rules on rates liability applicable to lands and heritages falling within a class prescribed by regulations made under the Local Government (Scotland) Act 1966 will apply.

The amendments made by these Regulations do not affect the ability of a rating authority to put in place a scheme for empty property relief relying on the power in section 3A of the Local Government (Financial Provisions etc.) (Scotland) Act 1962.