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

“Relief for lands and heritages used for certain hospitality or music purposes where the rateable value is no more than £100,0004A.

(1)

A person liable to pay rates in respect of lands and heritages on a day in the 2026-2027 financial year is entitled to the relief described in paragraph (3) in respect of the lands and heritages where the conditions described in paragraph (2) are met.

(2)

The conditions are—

(a)

the lands and heritages are wholly or mainly used on that day for a purpose specified in the classes in schedule 1A,

(b)

the lands and heritages have a rateable value of £100,000 or less,

(c)

the person is not granted relief in respect of the lands and heritages under regulation 5, and

(d)

an application for relief is made in accordance with regulation 3(1).

(3)

Subject to paragraph (8) and regulation 6, the relief is that the rates payable in respect of the lands and heritages for the day are reduced by an amount equivalent to 40% of the daily gross rates payable.

(4)

In this regulation “the daily gross rates payable” means, subject to paragraphs (5) to (7)—

(a)

where the rateable value of the lands and heritages is £51,000 or less, the rateable value of the lands and heritages, multiplied by 0.481, and then divided by 365,

(b)

where the rateable value of the lands and heritages is more than £51,000, the rateable value of the lands and heritages, multiplied by 0.535, and then divided by 365.

(5)

Where, in respect of any day on which a person is granted relief under this regulation—

(a)

the person is also granted relief under Part 3 (improved property) of the 2022 Regulations, and

(b)

regulation 7 (amount payable as rates) of the 2026 Regulations does not apply to the lands and heritages,

“the daily gross rates payable” means the rateable value of the lands and heritages minus the reference amount (see paragraph (9)), multiplied by—

(a)

0.481, and then divided by 365, where the rateable value is £51,000 or less,

(b)

0.535, and then divided by 365, where the rateable value is more than £51,000 but less than £100,000.

(6)

Where, in respect of any day on which a person is granted relief under this regulation—

(a)

the person is also granted relief under Part 3 of the 2022 Regulations, and

(b)

regulation 7 of the 2026 Regulations does apply to the lands and heritages,

“the daily gross rates payable” means the transitional limit calculated in accordance with regulation 10C(5) (relief granted – financial year 2026-2027 – lands and heritages in respect of which a relevant increase has been made within the previous 12 months) of the 2022 Regulations3.

(7)

Where, in respect of any day on which a person is granted relief under this regulation—

(a)

the person is not granted relief under Part 3 of the 2022 Regulations, but

(b)

regulation 7 of the 2026 Regulations does apply to the lands and heritages,

“the daily gross rates payable” means the transitional limit calculated in accordance with regulation 9 of the 2026 Regulations.

(8)

Relief granted by this regulation does not apply to the extent that it would reduce the rates payable to an amount less than nil.

(9)

In this regulation “the reference amount” means the total amount of any relevant increases under section 2A(5) (mark in valuation roll for new or improved properties) of the Local Government (Scotland) Act 19754 made in respect of the lands and heritages taking effect on a day within the previous 12 months.”.

“Limitation on reduction in liability6.

The maximum amount by which the liability of any person to pay rates may be reduced under regulation 4, 4A or 5, or any combination of those regulations, is £110,000.”.

“SCHEDULE 1Specified Purposes – General

Regulations 4(2)(a) and 5(1)(b)

Class 1 Bed and breakfast accommodation or guest house

Use as bed and breakfast accommodation or as a guest house.

Class 2 Camping site

Use as a camping site.

Class 3 Caravan

Use as a caravan (within the meaning of Part 1 of the Caravan Sites and Control of Development Act 19605).

Class 4 Caravan site

Use as a caravan site (within the meaning of Part 1 of the Caravan Sites and Control of Development Act 19606).

Class 5 Chalet, holiday hut or bothy

Use as a chalet, holiday hut or bothy.

Class 6 Self-catering holiday accommodation

Use as self-catering holiday accommodation.

Class 7 Timeshare accommodation

Use as timeshare accommodation.

Class 8 Market

Use as a market place on which goods are exhibited for sale to members of the public.

Class 9 Retail shop

Use as a shop, being a building or part of a building that is used for the retail sale of goods to members of the public who visit the building to buy goods for consumption or use elsewhere, whether or not by the buyer, for purposes unconnected with a trade or business.

Class 10 Leisure

Use as an art gallery or centre, sports club, sports centre, sports ground, clubhouse, gymnasium, museum, cinema, theatre, ticket office, recreational centre, recreational ground, park, bingo hall, tourist attraction or tourist facility.

Use as an amusement arcade, but excluding any lands and heritages on which any licence allows the operation of a sub-category B2 gaming machine, within the meaning of regulation 5(5) of the Categories of Gaming Machine Regulations 20077.

Use as a theme park, soft play centre, or as a venue for recreational activities such as ten pin bowling, laser tag, paintballing, escape rooms or miniature golf.

Use as a venue for lectures or lessons undertaken for recreational purposes, such as language lessons, music and dance lessons, or pottery and arts lessons.

Class 11 Service providers

Use to provide hair and beauty services, shoe repairs, key cutting, photo processing, laundry services, car or tool hire, car washing or repair of domestic/electrical goods.

Class 12 Massage parlour or health spa

Use as a massage parlour or a health spa.

Class 13 Funeral parlour

Use as a funeral parlour.

Class 14 Travel agency

Use as a travel agency or by a tour operator.

Class 15 Meeting, event or activity space

Use as a public hall or venue for hire for events or activities, where the events or activities are principally for the benefit of visiting members of the public.

Use as a venue for meetings of voluntary associations.

Class 16 Use as a facility for youth organisations

Use as a venue for meetings and activities of youth organisations, such as a scout hut.

SCHEDULE 1ASpecified Purposes – Hospitality and Music

Regulation 4A(2)(a) and 5(1)(b)

Class 1 Hotel or hostel

Use as a hotel or hostel, where no significant element of care is provided.

Class 2 Live music venue

Use as a venue to host live music events where both of the following conditions is satisfied—

(a)

the premises are used as an indoor, permanent venue operating all-year round, and

(b)

the venue is used to host live music events for a public audience.

Class 3 Public house or night club

Use as a public house or nightclub where each of the following conditions are satisfied—

(a)

a premises licence authorising the sale of alcohol for consumption both on and off the premises has been issued by a licensing board under section 26 (issue of licence and summary) of the Licensing (Scotland) Act 20058,

(b)

the premises are used for such sales to members of the public, principally for consumption on the premises, in accordance with the operating plan contained in the premises licence, and

(c)

the operating plan contained in the premises licence does not include any provision that such sales are made subject to those members of the public residing at, or consuming food on, the premises.

Class 4 Restaurant

Use for the sale of food or refreshments to members of the public for consumption on those premises, including any café, coffee shop, bistro, fast food restaurant or snack bar that is so used.”.