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

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"the 1962 Act" means the Local Government (Financial Provisions etc.) (Scotland) Act 1962[2];

"the 1966 Act" means the Local Government (Scotland) Act 1966[3];

"the 1975 Act" means the Local Government (Scotland) Act 1975[4];

"the 1978 Act means the Rating (Disabled Persons) Act 1978[5];

"the 1992 Act" means the Local Government Finance Act 1992[6];

"the 1997 Act" means the Local Government and Rating Act 1997[7];

"new entry", in relation to a split, merged or reorganised entry, means an entry in the roll taking effect from the day on which the merged, split or reorganised entry takes effect;

"old entry", in relation to a merged, split or reorganised entry, means an entry in the roll for the day immediately prior to the day from which the merged, split or reorganised entry takes effect;

"part residential subjects" has the meaning assigned to it in section 99(1) of the 1992 Act;

"rateable value", in relation to lands and heritages and a particular date, means-

(a) in the case of part residential subjects, the rateable value entered in the roll for that date and apportioned to the non residential use of those subjects; and

(b) in any other case, the rateable value entered in the roll for that date in respect of those lands and heritages,

and includes a rateable value so entered with retrospective effect;

"rates" means non domestic rates levied under section 7B of the 1975 Act[8];

"the relevant year" means the period of 12 months beginning with 1st April 2005; and

"the roll" means a valuation roll made up under section 1 of the 1975 Act[9].

Interpretation - mergers
     3. In these Regulations-

(a) "a merged entry" means any entry in the roll taking effect on a day in the relevant year as a result of lands and heritages shown in two or more old entries being shown in a single new entry, where-


(i) none of the lands and heritages shown in the relevant old entries are shown in a new entry, other than in the merged entry; and

(ii) the merged entry does not show any lands and heritages shown in an old entry, other than in the relevant old entries; and



(b) "the relevant old entries", in relation to a merged entry, means the old entries which showed the lands and heritages shown in the merged entry.

Interpretation - splits
     4. In these Regulations-

(a) "a split entry" means any entry in the roll taking effect on a day in the relevant year as a result of lands and heritages shown in a single old entry being shown in two or more new entries, where-


(i) none of those new entries show lands and heritages shown in an old entry, other than in the relevant old entry; and

(ii) no lands and heritages shown in the relevant old entry are shown in a new entry, other than in those new entries; and



(b) "the relevant old entry", in relation to a split entry, means the old entry which showed the lands and heritages shown in the split entry.

Interpretation - reorganisations
     5. In these Regulations-

(a) "a reorganised entry" means any entry in the roll taking effect on a day in the relevant year which is not a split or merged entry, and which shows lands and heritages-


(i) which were to any extent shown in two or more old entries; or

(ii) which are part only of lands and heritages shown in a single old entry and the other part of which is shown to any extent in one or more other new entries;



(b) "reorganisation" means a situation where, with effect from a day in the relevant year, lands and heritages shown immediately before that day in two or more old entries are shown in two or more new entries, each of which is a reorganised entry; and

(c) "the relevant old entries", in relation to a reorganised entry, means the old entries affected by the reorganisation which gave rise to that entry.

    (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-

(a) more than the upper transitional limit in respect of these lands and heritages and that day (ascertained in accordance with regulation 9 below), the amount payable as rates in respect of those lands and heritages and that day shall, subject to Parts V and VI below, be that upper transitional limit;

(b) less than the lower transitional limit in respect of these lands and heritages and that day (ascertained in accordance with regulation 10 below), the amount so payable shall, subject to those Parts, be that lower transitional limit.

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-

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-

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-

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

(a) in the case of lands and heritages shown in a split or reorganised entry taking effect on 1st April 2005, be calculated in accordance with the formula-



NL × 365

1.2

where-

NL is the notional liability of those lands and heritages on 1st April 2005 calculated in accordance with regulation 8;

(b) in any other case, be the deemed amount (or, in the case of a merged entry taking effect on 1st April 2005, the total deemed amount) in respect of those lands and heritages calculated in accordance with paragraph (2) below.

    (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-

(a) a material change of circumstances (within the meaning of section 37(1) of the 1975 Act[10]; or

(b) the assessor amending or adding an apportionment note under paragraph 2 of Schedule 5 to the 1992 Act,

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 and RV have the same meanings as in paragraph (1) above; and

RRV is the reduced rateable value of those lands and heritages.

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-

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-

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-

(a) reduced by virtue of one or more of the following enactments:-


(i) section 4(2) of the 1962 Act[11];

(ii) section 24(3) of the 1966 Act[12];

(iii) section 24A of the 1966 Act[13];

(iv) the 1978 Act;

(v) paragraphs 3 and 3A[14] of Schedule 2 to the 1997 Act; or



(b) determined in accordance with sections 6(1) and 7B(2) of the Valuation and Rating (Scotland) Act 1956[15],

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.

    (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-

(a) on that day those lands and heritages are subject to an apportionment under section 24A of the 1966 Act [16]; and

(b) regulation 7 or Part III or, as the case may be, Part V above has effect as regards those lands and heritages and that day.

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

A is the amount for the day determined under regulation 7, Part III or Part V above, as the case may be;

ARV is the applicable rateable value, being the rateable value treated for rating purposes as the rateable value of the lands and heritages in terms of subsection (2), or as the case may be subsection (4), of section 24A of the 1966 Act; and

RV is the rateable value shown in the roll for those lands and heritages.

    (3) Where-

(a) this regulation has effect as regards lands and heritages and a day; and

(b) the amount payable as rates in respect of those lands and heritages and that day falls to be reduced by virtue of an enactment referred to in paragraph (1)(a)(i), (iii) or (iv) of regulation 19 above,

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-

(a) shall require rates to be paid in respect of lands and heritages and a day where those lands and heritages are under any enactment entirely exempt from rates for that day; or

(b) shall prejudice the power of a rating authority to grant a reduction or remission of rates under section 4(5) of the 1962 Act[17], section 25A of the 1966 Act[18] or paragraph 4 of Schedule 2 to the 1997 Act[19].

[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