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Statutory Instruments of the Scottish Parliament


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SCOTTISH STATUTORY INSTRUMENTS


2005 No.126

RATING AND VALUATION

The Non-Domestic Rates (Levying) (Scotland) Regulations 2005

  Made 2nd March 2005 
  Laid before the Scottish Parliament 3rd March 2005 
  Coming into force 1st April 2005 


ARRANGEMENT OF REGULATIONS


PART I

INTRODUCTORY
1. Citation and commencement
2. Interpretation - general
3. Interpretation - mergers
4. Interpretation - splits
5. Interpretation - reorganisations

PART II

LANDS AND HERITAGES ON ROLL ON 1ST APRIL 2005
6. Application of Part II
7. Amount payable as rates
8. Notional liability
9. Upper transitional limit
10. Lower transitional limit
11. Base liability
12. Changes in rateable value after 1st April 2005

PART III

MERGERS, SPLITS AND REORGANISATIONS AFTER 1ST APRIL 2005
13. Application of Part III
14. Mergers and reorganisations - amount payable as rates
15. Splits - amount payable as rates
16. Changes in rateable value

PART IV

LANDS AND HERITAGES WITH RATEABLE VALUE OF £11,500 OR LESS
17. Amount payable as rates

PART V

LANDS AND HERITAGES WITH RATEABLE VALUE OF MORE THAN £29,000
18. Amount payable as rates

PART VI

REDUCTIONS, REMISSIONS AND EXEMPTIONS
19. Charitable and other reductions
20. Partially unoccupied lands and heritages
21. Exemptions and discretionary reductions and remissions

PART VII

REVOCATION
22. Revocation

The Scottish Ministers, in exercise of the powers conferred upon them by section 153 of the Local Government etc. (Scotland) Act 1994[
1] and of all other powers enabling them in that behalf, hereby make the following Regulations:



PART I

INTRODUCTORY

Citation and commencement
     1. These Regulations may be cited as the Non Domestic Rates (Levying) (Scotland) Order 2005 and shall come into force on 1st April 2005.

Interpretation - general
    
2. In these Regulations-

and includes a rateable value so entered with retrospective effect;

Interpretation - mergers
     3. In these Regulations-

Interpretation - splits
    
4. In these Regulations-

Interpretation - reorganisations
    
5. In these Regulations-



PART II

LANDS AND HERITAGES ON ROLL ON 1ST APRIL 2005

Application of Part II
    
6.  - (1) Subject to paragraphs (2) and (3) below, this Part applies to lands and heritages-

    (2) This Part shall not apply to lands and heritages shown in an entry in the roll on 1st April 2005 if-

    (3) This Part shall cease, as from the date of any merged, split or reorganised entry taking effect subsequent to 1st April 2005, to apply to the lands and heritages shown in that entry.

Amount payable as rates
    
7. Where the notional liability in respect of any lands and heritages to which this Part applies and any day in the relevant year is-

Notional liability
    
8. The notional liability in respect of any lands and heritages to which this Part applies and any day shall be calculated in accordance with the formula-

RV × PF

365
where-

Upper transitional limit
    
9. The upper transitional limit in respect of any lands and heritages to which this Part applies and any day shall, subject to regulation 12 below, be calculated in accordance with the formula-

BL × 1.160

365
where-

Lower transitional limit
    
10. The lower transitional limit in respect of any lands and heritages to which this Part applies and any day shall, subject to regulation 12 below, be calculated in accordance with the formula-

BL × 0.928

365
where-

Base liability
    
11.  - (1) The base liability in respect of any lands and heritages shall-

    (2) In paragraph (1)(b) above, 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 year ending 31st March 2005, had that amount been calculated on the basis of the rateable value of those lands and heritages on that date, before applying any reliefs allowed in terms of these Regulations or the additional factor specified in regulation 18(2) below.

Changes in rateable value after 1st April 2005
    
12.  - (1) Where, subsequent to 1st April 2005, the rateable value of lands and heritages to which this Part applies is increased with effect from a day in the relevant year (the "effective day"), the upper and lower transitional limits in respect of those lands and heritages shall, as regards days in that year on and after that effective day, be calculated in accordance with the formula-

TL +(IRV - RV) × PF

365
where-

    (2) Where the rateable value of lands and heritages to which this Part applies is reduced with effect from a day in the relevant year subsequent to 1st April 2005, as a result of-

the upper and lower transitional limits in respect of those lands and heritages shall, as regards days in that year on and after that effective day, be calculated in accordance with the formula-

TL × RRV

RV
where-



PART III

MERGERS, SPLITS AND REORGANISATIONS AFTER 1ST APRIL 2005

Application of Part III
     13.  - (1) Where, subsequent to 1st April 2005, lands and heritages are shown in a merged, split or reorganised entry with effect from a day in the relevant year (the "effective day"), this Part shall, subject to paragraph (2) below, apply to those lands and heritages as from that effective day.

    (2) This Part shall not apply to lands and heritages shown-

Mergers and reorganisations - amount payable as rates
    
14.  - (1) Where lands and heritages to which this Part applies are shown in a merged or reorganised entry, the amount payable as rates in respect of those lands and heritages and a day in the relevant year shall, subject to regulation 16 and Parts IV to VI below, be calculated in accordance with the formula-

TAL ×
RV

TORV
where-

    (2) For the purpose of paragraph (1) above, the applicable liability in respect of an old entry is-

Splits - amount payable as rates
    
15. Where lands and heritages to which this Part applies are shown in a split entry, the amount payable as rates in respect of those lands and heritages and a day in the relevant year shall, subject to regulation 16 and Parts IV to VI below, be calculated in accordance with the formula-

AD ×
RV

ORV
where-

Changes in rateable value
    
16.  - (1) Where the rateable value of lands and heritages to which this Part applies is increased with effect from a day in the relevant year subsequent to 1st April 2005, the amount payable as rates in respect of those lands and heritages and any day in the relevant year ("the effective day") on or after that effective day shall, subject to Parts IV to VI below, be calculated in accordance with the formula-

AD +(IRV - RV) × PF

365
where-

    (2) Where the rateable value of lands and heritages to which this Part applies is reduced with effect from a day in the relevant year, the amount payable as rates in respect of those lands and heritages and any day in the relevant year on or after that effective day shall, subject to Parts IV to VI below, be calculated in accordance with the formula-

AD ×RRV

RV
where-

    (3) Where the rateable value of lands and heritages is changed for a second or subsequent time whilst this Part applies to them, paragraphs (1) and (2) above shall have effect with the substitution, in the definition of "AD" in paragraph (1), for the words "regulation 14(1) or 15 above" of the words "this paragraph or paragraph (2) below".



PART IV

LANDS AND HERITAGES WITH RATEABLE VALUE OF £11,500 OR LESS

Amount payable as rates
    
17.  - (1) This regulation applies to lands and heritages on a day in the relevant year where they have a rateable value of £11,500 or less.

    (2) Subject to paragraphs (3) and (4) below, where the cumulative rateable value of lands and heritages to which this Part applies falls within one of the ranges specified in column 1 (cumulative rateable value range) of the table below, the amount of rates payable shall be reduced by the percentage of rate relief specified in the corresponding entry in column 2 (percentage of rate relief).

Cumulative rateable value range Percentage of rate relief
Less than £3,500 50%
£3,500 or above but under £4,500 40%
£4,500 or above but under £5,750 30%
£5,750 or above but under £7,000 20%
£7,000 or above but under £8,000 10%

    (3) Where the amount of rates payable in respect of any lands and heritages to which this regulation applies falls to be-

then the amount of rate relief shall be restricted to 5% in respect of the rates payable as so reduced or, as the case may be, determined.

    (4) Where the amount of rates payable in respect of any lands and heritages to which this regulation applies falls to be reduced or remitted by virtue of a rating authority exercising any of the powers listed at regulation 21(b) below, and paragraph (3) above does not apply, then the percentage of rate relief as calculated under paragraph (2) above shall be applied to the rates payable as so reduced or, as the case may be, remitted.

    (5) Where the cumulative rateable value is £8,000 or above but includes lands and heritages which are valued at £11,500 or under then the amount of rate relief for any such lands and heritages that are valued at £11,500 or under shall be 5%.

    (6) For the purposes of this regulation the "cumulative rateable value" is the total rateable value of all lands and heritages occupied by an individual ratepayer in Scotland.



PART V

LANDS AND HERITAGES WITH RATEABLE VALUE OF MORE THAN £29,000

Amount payable as rates
     18.  - (1) This regulation applies to lands and heritages on any day in the relevant year when they have a rateable value exceeding £29,000.

    (2) The additional amount payable as rates in respect of lands and heritages and a day on which this regulation applies to them shall be calculated in accordance with the formula-

AARP = (RV × S)

365
where-



PART VI

REDUCTIONS, REMISSIONS AND EXEMPTIONS

Charitable and other reductions
    
19.  - (1) This regulation has effect for determining the amount payable as rates in respect of lands and heritages and a day in the relevant year where-

    (2) Where this regulation has effect, the amount payable shall be determined by applying the enactments referred to in paragraph (1)(a) above to the amount determined under regulation 7 or Part III above, as the case may be, in the same manner as those enactments are applied to the full amount payable as rates in respect of lands and heritages and a day in the case where neither regulation 7 nor Part III above has effect.

    (3) For the purposes of paragraph (2) above the amount determined under regulation 7 shall include any such additional amounts payable as rates under Part V.

Partially unoccupied lands and heritages
    
20.  - (1) This regulation has effect for determining the amount payable as rates in respect of lands and heritages and a day in the relevant year where-

    (2) Where this regulation has effect, the amount payable shall, subject to paragraph (3) below, be calculated in accordance with the formula-

A ×ARV

RV
where-

    (3) Where-

the amount payable shall be determined in accordance with paragraph (2) of that regulation, but as if for the words "regulation 7 or Part III above, as the case may be," in that paragraph there were substituted the words "regulation 20(2) below".

Exemptions and discretionary reductions and remissions
     21. Nothing in these Regulations-



PART VII

REVOCATION

Revocation
     22.  - (1) Subject to paragraph (2) below, the Non Domestic Rates (Levying) (Scotland) Regulations 2004[20] are hereby revoked.

    (2) Nothing in paragraph (1) above shall affect the continuing operation of those Regulations as regards any day prior to 1st April 2005.


TOM McCABE
A member of the Scottish Executive

St Andrew's House, Edinburgh
2nd March 2005



EXPLANATORY NOTE

(This note is not part of the Regulations)


These Regulations make provision as to the amount payable in certain circumstances as non domestic rates in respect of non domestic subjects in Scotland. They apply only to the financial year 2005 06 ("the relevant year").

Part I makes provision as to citation, commencement and interpretation.

Part II deals with amounts payable in respect of non domestic subjects which are shown in the valuation roll as at 1st April 2005 and 31st March 2005. The Part ceases to apply to a non domestic subject if and when it becomes the subject of a merged, split or reorganised entry in the valuation roll taking effect during the relevant year. For every day of the relevant year, the notional rates liability for a non domestic subject (that is, the full amount ordinarily payable as rates) must be compared against that subject's upper and lower transitional limits. If the notional liability is more than the upper limit or less than the lower limit, the amount payable will be equal to the upper or lower limit, as the case may be (regulation 7). Upper and lower transitional limits are calculated by multiplying a non domestic subject's notional rates liability for 2004/2005 (its "base liability") by set figures (regulations 9 and 10). Regulation 11 makes provision for the calculation of base liability. Regulation 12 specifies how transitional limits are to be recalculated in cases where the rateable value of the non domestic subject changes during the relevant year.

Part III makes provision for the situation where a non domestic subject is shown in a merged, split or reorganised entry in the valuation roll which takes effect during the relevant year. If the amount of rates payable in respect of any component of the property shown in the new entry was being determined under Regulations immediately prior to that entry taking effect, then Part III applies to determine the amount payable in respect of that property for the rest of the year (regulation 13). That amount is calculated by apportioning or aggregating, as the case may be, the amount or amounts payable immediately prior to the effective date of the new entry in respect of the non domestic subject affected by the new entry (regulations 14 and 15). Regulation 16 provides for amounts payable to be recalculated if there is a change in the rateable value of property whilst Part III applies to it.

Part IV provides for a general reduction in rates for non domestic subjects with a rateable value of £11,500 or less. Regulation 17 provides for a reduction on a sliding scale of between 10 per cent and 50 per cent on the rates payable where the cumulative rateable value of the non domestic subject occupied by the ratepayer is less than £8,000. Where the amount of rates payable in respect of which the non domestic subject to which this part applies falls to be reduced by virtue of any of the enactments listed at regulation 17(3)(a), or is determined in accordance with regulation 17(3)(b) then the reduction in rates is limited to 5 per cent. Where the amounts of rates payable is reduced or remitted by virtue of the enactments listed at regulation 21(b) and regulation 17(3) does not apply then the percentage of rate relief given on the sliding scale shall be applied to the rates reduced or remitted. Where the cumulative value of the non domestic subjects occupied by the ratepayer is £8,000 or above, but includes subjects which are valued at £11,500 or under, the reduction on the rates payable on the said subjects is restricted to 5 per cent.

Part V provides for a general increase in rates for non domestic subjects with a rateable value of more than £29,000.

Part VI deals with reductions, remissions and exemptions. Regulations 19 and 20 provide for reductions under other enactments to apply in cases where the amount payable is determined under Part II, III, IV or V in the same way as they apply in cases where these Regulations do not have effect. Nothing in the Regulations requires the payment of rates on property which is entirely exempt from rates under any other enactment, or prejudices the power of a rating authority to grant discretionary reductions or remissions (regulation 21).

Part VII revokes the Non Domestic Rates (Levying) (Scotland) Regulations 2004.


Notes:

[1] 1994 c.39. The functions of the Secretary of State were transferred to the Scottish Ministers by virtue of section 53 of the Scotland Act 1998 (c. 46).back

[2] 1962 c. 9.back

[3] 1966 c.51.back

[4] 1975 c.30.back

[5] 1978 c. 40.back

[6] 1992 c.14.back

[7] 1997 c.29.back

[8] Section 7B was inserted by the Local Government Finance Act 1992 (c.14), section 110(2) and was amended by the Local Government etc. (Scotland) Act 1994 (c.39), Schedule 13, paragraph 100(4).back

[9] Section 1 was repealed in part by the Local Government and Rating Act 1997 (c. 29), Schedule 4.back

[10] The relevant definition in section 37(1) was amended by the Rating and Valuation (Amendment) (Scotland) Act 1984 (c.31), section 20 and Schedule 2, paragraph 17, by the Abolition of Domestic Rates etc. (Scotland) 1987 Act (c.47), Schedule 6, and by the Local Government etc. (Scotland) Act 1994 (c.39), Schedule 13, paragraph 100(8).back

[11] Section 4(2) was amended by the Local Government (Miscellaneous Provisions) (Scotland) Act 1981 (c.23), section 5(a) and Schedule 4, the Local Government and Planning (Scotland) Act 1982 (c.43), section 5(1)(a) and the Local Government Finance Act 1988 (c.41), Schedule 12, paragraph 7.back

[12] Section 24 was substituted by the Local Government etc. (Scotland) Act 1994 (c.39), section 154.back

[13] Section 24A was inserted by the Local Government etc. (Scotland) Act 1994 (c.39), section 155.back

[14] Paragraph 3 was amended and paragraph 3A was inserted by sections 28 and 29 respectively of the Local Government in Scotland Act 2003, asp 1.back

[15] 1956 c.50; section 7B was inserted by the Local Government and Housing Act 1989 (c.42), section 145 and Schedule 6, paragraph 4.back

[16] Section 24A was inserted by the Local Government etc. (Scotland) Act 1994 (c.39), section 156.back

[17] Section 4(5) was amended by the Local Government and Planning (Scotland) Act 1982, section 5(1)(b), the Local Government etc. (Scotland) Act 1994 (c.39), Schedule 13, paragraph 57 and the Local Government and rating Act 1997, Schedule 3, paragraph 2(a).back

[18] Section 25A was inserted by the Local Government etc. (Scotland) Act 1994 (c.39), section 156.back

[19] Paragraph 4 was amended by section 28 of the Local Government in Scotland Act 2003 asp 1.back

[20] S.S.I. 2004/92.back



ISBN 0 11 069475 9


 © Crown copyright 2005

Prepared 11 March 2005


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URL: http://www.bailii.org/scot/legis/num_reg/2005/20050126.html