Local government finance circular 4/2022 - non-domestic rates relief: guidance
This circular provides general information relating to current arrangements for non-domestic rates reliefs in 2022 to 2023. It also provides examples of supporting documentary evidence. The information was compiled with the involvement of officers from COSLA and the IRRV.
Renewable Energy Relief
141. The key legislation is the Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 2010.
142. Eligibility for the Renewable Energy Relief relating to community benefit requires arrangements which give at least 15% of the annual profit to a community organisation, in return for investment (or, failing that, so much of the annual profit as is attributable to 0.5 megawatt of the total installed capacity)[35]. Table 3 shows the sliding scale of applicable relief against total RV of all the qualifying properties in Scotland that the applicant occupies or (if vacant) is entitled to occupy.
| Cumulative RV in Scotland | Relief (%) |
|---|---|
| up to £145,000 | 100 |
| over £145,000 and up to £430,000 | 50 |
| over £430,000 and up to £860,000 | 25 |
| over £860,000 and up to £4 million | 10 |
| over £4 million | 2.5 |
143. Relief is available for subjects solely concerned with the production of heat or power (or both) from the following sources:
- biomass
- biofuels
- fuel cells
- photovoltaics
- water (including waves and tides, but excluding production from the pumped storage of water) ("hydro schemes")
- wind
- solar power
- geothermal sources
144. In addition, hydro schemes with a RV of no more than £5 million are also eligible for 60% relief.[37] This relief is available until 31 March 2032.[38]
145. This relief is mandatory and 100% funded by the Scottish Government.
146. This relief is likely to be considered a subsidy under the TCA and is subject to the MFA.
Contact
Email: NDR@gov.scot
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