Local government finance circular 5/2023: non-domestic rates relief guidance

District heating relief

80. The key legislation is The Non-Domestic Rates (District Heating Relief) (Scotland) Regulations 2017.
81. Properties used wholly or mainly for the purposes of a district heating network may receive 50% relief. This relief is available until 31 March 2032.[1]
82. Further, new properties, entered on the valuation roll on or after 1 April 2021, used wholly or mainly for the purposes of a district heating network which is powered wholly or mainly by renewable generation may receive 90% relief. This relief is available until 31 March 2024.
83. An application is required for this relief.
84. This relief is likely to be considered a subsidy under the Act and is listed in the Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2023. Public authorities should consider whether this relief is awarded as MFA, or whether it meets the other subsidy control requirements of the Act.