New and improved properties relief
For new entry or new build properties, relief is available for properties that have been entered on the valuation roll on or after1 April 2018. Such properties will receive 100% relief whilst vacant, with a further 100% relief continuing for 12 months following first occupation. This will not apply where one or more buildings, or parts of a building, forming part of the new entry were shown in any entry on the roll on the day immediately prior to the day the new entry takes effect.
Improved properties relief is available for existing properties that have had their rateable value increased on or after 1 April 2018 as a result of improvements, such as refurbishment or expansion to, or the erection of one or more buildings to, or by the change of use of, the existing lands and heritages. However, this excludes increases caused by the combination, division or reorganisation of lands and heritages shown in a different entry in the Roll on the day before the change takes effect. This relief will apply for 12 months from the date of increase, regardless of whether the property is vacant or occupied.
The Non-Domestic Rates (Levying and Miscellaneous Amendment) (Scotland) Regulations 2023 provide for continuation of improvement relief awarded in respect of 2022-23, where the period of relief continues into 2023-24. This relief will be awarded at the same percentage of relief as applies at 31 March 2023, but on the basis of the rateable value following the revaluation taking effect on 1 April 2023.
This relief is unlikely to be considered a subsidy under the Subsidy Control Act 2022 ("the Act") and is listed in the Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2023. Public authorities need to consider whether this relief is awarded as Minimal Financial Assistance (MFA), or whether it meets the other subsidy control requirements of the Act.