Legislation – The Non-Domestic Rates (Levying and Miscellaneous Amendment) (Scotland) Regulations 2026

These Regulations make provision as regards the amount payable as non-domestic rates in certain circumstances in respect of certain non-domestic properties in Scotland. For the financial year 2026-2027, the non-domestic rate poundage is fixed by the Non-Domestic Rate (Scotland) Order 2026.

Part 2 contains provisions in respect of the levying of non-domestic rates for certain types of property. Regulations 3 to 7 apply to the financial year 2026-2027.

Regulation 3 provides for a reduction in the amount of rates otherwise payable in respect of non-domestic properties which comprise only one entry in the valuation roll and have a rateable value of less than £20,000. However, where the enactments listed in regulation 3(4)(a) or a determination mentioned in regulation 3(4)(b) also provide for a reduction in rates liability, the rate relief provided under regulation 3(3) is reduced by a corresponding amount. Regulation 3(5) provides that regulation 3 does not apply to, and therefore no relief is granted in respect of, lands and heritages that are receiving relief on account of being unoccupied or that are wholly or mainly used for certain purposes, including as parking spaces or for payday lending. Shootings and deer forests are excluded, subject to certain exceptions, as well as lands and heritages in respect of which a short-term let licence is required, where this has not been obtained. Regulation 3(2) provides that where there is an entitlement to relief under both regulation 3 and under regulation 7 of the Non-Domestic Rates (Transitional Relief) (Scotland) Regulations 2026 (“the Transitional Relief Regulations”), the relief under regulation 3 is to be applied to the figure arrived at through applying regulation 7 of the Transitional Relief Regulations. Regulation 7 caps the amount payable as non-domestic rates in certain circumstances.

Regulation 4 provides for a reduction in the amount of rates otherwise payable in respect of non-domestic properties which comprise more than one entry in the valuation roll, and cumulatively have a rateable value of no more than £35,000. In a similar way to regulation 3(4), regulation 4(4) provides for a reduction in the rate relief provided under regulation 4(3) if the enactments listed in regulation 4(4)(a) or a determination mentioned in regulation 4(4)(b) also provide for a reduction. Regulation 4(5) makes similar provision to regulation 3(5) excluding certain properties from relief. Regulation 4(2) provides that where there is an entitlement to relief under both regulation 4 and under regulation 7 of the Transitional Relief Regulations, the relief under regulation 3 is to be applied to the figure arrived at through applying regulation 7 of the Transitional Relief Regulations. Regulation 7 caps the amount payable as non-domestic rates in certain circumstances.

Regulation 5 provides for an additional amount to the amount of rates otherwise payable in respect of lands and heritages with a rateable value exceeding £51,000, but not exceeding £100,000, and sets out a formula for the calculation of that amount. It also sets out certain situations where no additional amount is payable.

Regulation 6 provides for an additional amount to the amount of rates otherwise payable in respect of lands and heritages with a rateable value exceeding £100,000, and sets out a formula for the calculation of that amount. As with regulation 5, regulation 6 also sets out certain situations where no additional amount is payable.

Regulations 5(5) and 6(6) provide that the provision for an additional amount does not over-ride any provision for non-domestic rates relief.

Regulation 7 provides for 100% relief on non-domestic rates liability, for a period of 12 months, on non-domestic properties which become re-occupied immediately after having been unoccupied for a period of at least 6 months and where the rateable value does not exceed £100,000. The relief will cease to apply where the lands and heritages become unoccupied again during the 12 month period. It will not apply to certain lands and heritages such as those wholly or mainly used for parking spaces or payday lending, or, subject to certain exceptions, as shootings or deer forests.

Regulation 8 provides 100% relief from non-domestic rates for lands and heritages which are wholly or mainly used for the provision of an electric vehicle charging point.

Regulation 9 provides that entitlement to relief for a newly re-occupied property which arose during the financial year 2025-2026 will run for a full period of 12 months from the date the property became occupied, regardless of any change to rateable value as a result of revaluation, or any other change in eligibility for the relief. Relief will be awarded in terms of regulation 7 of these Regulations, until the end of the 12 month period from the date of re-occupation is reached.

Regulation 10 provides that nothing provided for in relation to levying in Part 2 cuts across any complete exemption from liability to pay rates, nor prevents a rating authority from granting a discretionary reduction or remission of rates under specified provisions. Similarly, a local authority is not prevented from issuing a ratepayer with a notice under section 20 of the Non-Domestic Rates (Scotland) Act 2020. Such a notice can be served by a local authority on a ratepayer who is in receipt of a relief, other than unoccupied property relief (under section 24A of the Local Government (Scotland) Act 1966.

Regulation 11 revokes regulations 2 to 7 of the Non-Domestic Rates (Levying and Miscellaneous Amendment (Scotland) Regulations 2025, with a saving provision to preserve their operation in respect of the financial year 2025-2026.

Part 3 contains miscellaneous amendments in respect of non-domestic rating regulations.

Regulation 12 amends the Non-Domestic Rates (Relief for New and Improved Properties) (Scotland) Regulations 2022. It inserts a new Part 3B, which provides that where relief is granted under regulation 10C of the Non-Domestic Rates (Relief for New and Improved Properties) (Scotland) Regulations 2022 for a period which includes 1 April 2026, this will be based on the same percentage relief for the full duration, regardless of any change to rateable value as a result of revaluation on 1 April 2026. This is qualified only to the extent that rates liability may not be reduced to an amount less than nil.

Regulation 13 makes a consequential amendment to the Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2023, to add relief under regulations 3, 4 and 8 of these Regulations, and regulations 4 and 5 of the Non-Domestic Rates (Retail, Hospitality and Leisure) (Scotland) Regulations 2026, to the list of reliefs, the award of which must be compatible with the Subsidy Control Act 2022.