Business Rates (Non-Domestic Rates)

Rates Relief

Small Business Bonus Scheme

The Small Business Bonus Scheme has been amended from 1st April 2010 to reflect the 2010 Revaluation to provide relief to businesses with properties in Scotland of which the combined rateable value is £18,000 or less.

In addition, where the cumulative rateable value of a businesses’ properties falls between £18,000 and £25,000, the scheme offers 25% relief to individual properties with a rateable value of £18,000 or under.

Combined Rateable Value of all business properties in Scotland	Percentage relief available
Up to £10,000	100%
£10,001 to £12,000	50%
£12,001 to £18,000	25%
Upper limit for cumulative RV 25,000	25%

• Complete the online small business bonus scheme application form
• Further information about the previous scheme can be obtained from the 2008-9 information leaflet or 2009-10 information leaflet

Empty Property Relief

In general, there will be no non-domestic rates to pay for the first three months that a property is empty. After that, the rates bill will be calculated by taking the rateable value of the empty non-domestic property and multiplying this by one half of the current non-domestic poundage rate (this is referred to as the empty property rate). However some properties e.g. industrial and listed buildings, and properties with rateable values of less than £1,700, are exempt from the 50% empty property rate levy and do not have to pay non-domestic rates at all. Businesses that occupy a property, only trading on a seasonal basis at certain times of the year, would not qualify for relief.

• Complete the online Empty Property Relief Form
• Alternatively, download the application form

Part of a property is not being used and is completely unoccupied for a short time

As short term empty property relief is granted at the discretion of the Council, each Council may have a different policy in place. South Ayrshire Council policy is to award this relief to former industrial premises only, where the value of the unoccupied part is greater than 5% of the total rateable value, and for a maximum period of 3 months per financial year. Download a partly unoccupied property application form.

Mandatory Relief for Registered Charities

Where an organisation is a registered charity and the property occupied by the organisation is used "wholly or mainly for charitable purposes", there may be an entitlement to 80% mandatory rates relief. It is not sufficient that a property is owned by a charity - the Council must determine whether a property is being used "wholly or mainly for charitable purposes". Charity shops must be able to demonstrate that they are used wholly or mainly for the sale of donated goods.

Using the discretionary powers available to it, the Council's policy is to top-up the 80% mandatory relief with a further 20% discretionary relief. Download a mandatory and discretionary relief application form.

Discretionary Rates Relief - Non-profit Making Organisations

Councils have discretionary powers to grant up to 100% rate relief to non-profit making organisations, whether they are registered charities or not. To qualify, an organisation must either be charitable, religious, or concerned with education, social welfare, science, literature or the fine arts, or the property must be used by a non-profit-making organisation and used wholly or mainly for the purpose of recreation (sport). Recreational or sporting organisations licensed to sell alcohol may also apply for relief, although the amount of relief awarded will reduce proportionally with respect to bar turnover and catering sales.

At a meeting of the Council's Leadership Panel of 24 September 2008, members approved a change to the Council's Discretionary rates relief policy. This was necessary because of the legal obligations imposed on local authorities through the Equality Act 2006. It was also considered appropriate that any revised policy should accord with the Council's Gender Equality Scheme.

The Council requires that organisations and clubs demonstrate, through the inclusion of an equity statement within their constitution and rules, a strong commitment to equal opportunities for all sectors of the community, ensuring that all participants, volunteers coaches or parents receive equal treatment regardless of age, gender, marital status, employment status, social class, colour, race, ethnic or national origin, religious belief or disability.

• Download discretionary relief application form and additional information request form for licensed sports clubs.
• Download copy of Model Equity Policy Statement.

Sports Clubs Registered as Community Amateur Sports Clubs (CASCs)

Sports Clubs registered with Her Majesty's Revenue and Customs Service (HMRC) as CASCs are entitled to 80% mandatory rates relief. Clubs wishing to apply for this relief should provide the Council with a copy of their registration certificate. Providing that this confirms the registration commencement date, no further application is required. In the event that a club thinks it may be entitled to relief greater than 80% under the discretionary relief scheme, the appropriate discretionary application form should be completed.

Rural Rates Relief

Certain types of businesses located within a rural settlement with a population below 3,000, and in an area designated as rural by Scottish Ministers, may be eligible for mandatory relief of rates. The types of business that may qualify for this relief, together with the 1st April 2010 rateable value thresholds, are:

• the only general store or post office with a rateable value of £8,500 or less;
• a food shop with a rateable value of £8,500 or less;
• the only public house/small hotel (with appropriate license), with a rateable value of £12,750 or less;
• a petrol filling station with a rateable value of £12,750 or less.

These premises are entitled to mandatory 50% rate relief, with councils having discretionary powers to top up this relief to 100%. The Council's policy is to top-up the 50% mandatory relief with a further 25% discretionary relief, with the exception of petrol filling stations, which get an additional 50% discretionary relief.

Councils also have discretionary powers to grant up to 100% rate relief to properties within a rural settlement with a rateable value of £17,000 or less, used for purposes that are beneficial to the local community. This relief is currently applicable to rural schools only.

• Download general store/post office rural relief application form and information letter
• Download food shop rural relief application form and information letter
• Download public house/hotel rural relief application form and information letter
• Download filling station rural relief application form and information letter

De-Rating Allowance/Discretionary Rate Relief for Stud Farms

The rateable value of lands and heritages which comprise or include buildings used for the breeding and/or rearing of horses and occupied with agricultural land or agricultural buildings should be ascertained by making a deduction from what would otherwise be the rateable value. The deduction is made from the value of the whole property by the local assessor to reflect how much of the property is used as a stud farm. The maximum amount of the deduction the assessor can make is determined by the Scottish Ministers by order and currently stands at £3,500.

Additionally, stud farms with a rateable value of £7,000 or less, newly established on or after 1 April 2003, will be able to qualify for discretionary rate relief. The Council's policy is to award an additional 25% discretionary relief to complement the de-rating allowance.

Disabled Relief

To qualify for relief in terms of the Rating (Disabled Persons) Act 1978 the premises on which relief is claimed must be used wholly or mainly for one of the purposes specified below or for a purpose ancillary to the purposes specified:

• The provision of residential accommodation for the care or after care of disabled persons or persons suffering from illness. (Note: that 'care' in this context does not include the provision of medical, surgical, or dental treatment i.e. hospitals and clinics are excluded);
• The provision of facilities for training, or keeping suitably occupied, disabled persons or persons suffering from illness;
• The provision of Welfare Services for disabled persons;
• The provision for disabled persons of facilities for employment or work in terms of Section 15 of the Disabled Persons (Employment) Act 1944;
• The provision of sheltered employment by a local authority in terms of Section 3 (1) of the Disabled Persons (Employment) Act 1958.

This relief is usually awarded to nursing homes, although other types of facilities associated with the welfare or training of disabled persons may also qualify.

• Download a disabled relief application form together with a supplementary information request form

Renewable Enery Generation Relief Scheme

The Renewable Energy Generation Relief Scheme will provide non- domestic rates relief from 1 April 2010, to renewable energy producers who are solely concerned with the production of heat or power (or both) from the following sources: biomass; biofuels; fuel cells; photovoltaics; water (including waves and tides, but excluding production from the pumped storage of water); wind; solar power; geothermal.

The qualifying conditions for the purposes of the scheme is defined as a business owning, leasing or otherwise entitled to occupy one or more business properties in Scotland, solely concerned with the generation of heat or power (or both) from the sources noted above.

The level of renewable energy generation rate relief available depends on the combined rateable value of your business's eligible property (or properties), and is set out in the table below:

Combined Rateable Value of all business properties in Scotland	Percentage relief available
Up to £145k	100%
Up to £430k	50%
between £430k to £860k	25%
between £860k to £4m	10%
greater than £4m	2.5%

Download a Renewable Energy Generation Rates Relief application form.
Further information can be obtained from the scheme guidance notes.

Revaluation-Transitional Arrangements

Every five years all non-domestic (business) properties are assessed, and given new rateable values. The latest revaluation came into effect from 1 April 2010 and all business properties will have had their rateable values reassessed based on a valuation (tone) date of 1 April 2008.

Unlike previous revaluations, there is no transitional rates relief scheme, which means that businesses will pay their full rates liability from 1st April 2010, subject to entitlement to the various other relief schemes available.

Exemption from Rating

Churches, church halls, and other places of worship are entered in the Valuation Roll but are fully exempt from the payment of rates.

Scottish Business Rates Deferral Scheme

In response to the difficulties facing businesses as a result of the economic crisis, the Scottish Government and all 32 Scottish local authorities had implemented a new business rates deferral scheme for 2009-10 to minimise the impact of the increase in business rates, help cash flow and provide a 'much-needed boost' for the Scottish economy.

This scheme allowed businesses to choose to spread repayment of part of their 2009-10 business rates over 3 years. Further information can be obtained from the Scottish Business Rates Deferral Scheme 2009-10 leaflet.

However, this scheme was for one year only, although the amounts deferred from 2009-10 will be shown as additional charges on the rates bills of successful applicants during 2010-11 and 2011-12.