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

Rural relief

129. The key legislation is the Non Domestic Rating (Rural Areas and Rateable Value Limits) (Scotland) Order 2005 and Schedule 2 to the Local Government and Rating Act 1997 as well as the Non Domestic Rates (Rural Areas) (Scotland) Regulations 2017.[1]
130. Mandatory relief of 100% is available to certain properties indicated in Table 4 which are the only such property located in a settlement in the local authority’s rural settlement list. The council’s determination of this is generally informed by local knowledge and the applicant’s declaration. The council compiles and maintains the rural settlement list, which is generally updated annually by the council in December to be in place for the start of the next financial year.

Table 4: Rural relief thresholds

131. In addition, local authorities have discretionary powers to grant up to 100% relief to properties which provide a service which is of benefit to the community where they consider it would be in the interest of council tax payers to do so.
132. 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.