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

Hardship relief

104. The key legislation is section 25A of the Local Government (Scotland) Act 1966.
105. A local authority may award up to 100% relief if the applicant would otherwise sustain hardship, and if doing so was reasonable in light of the interests of council taxpayers.
106. This relief is discretionary and generally 75% funded by the Scottish Government.
107. If the applicant’s activity is commercial in nature, then the relief may be considered a subsidy. Public authorities should consider whether this relief is awarded as MFA, or whether it meets the other subsidy control requirements of the Act.