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

Small business bonus scheme

133. The key legislation is The Non-Domestic Rates (Levying and Miscellaneous Amendment) (Scotland) Regulations 2023.[1]
134. Occupiers of property located in Scotland (or those entitled to occupy it) with combined RV of £35,000 or less may be eligible for relief. Multiple properties linked to one business (e.g. a chain of shops) may be eligible for relief if their combined RV does not exceed £35,000.
135. Tables 5 and 6 outline reliefs and thresholds.

Table 5: Relief thresholds for SBBS where the ratepayer is liable for rates for only one entry in the valuation roll

Table 6: Relief thresholds for SBBS where the ratepayer is liable for rates for multiple entries in the valuation roll

136. Multiple properties occupied respectively by different businesses (e.g. with separate accounts, premises, employees, suppliers, leases, marketing and websites), which nonetheless seem to be linked, may be considered by the local authority as if they were occupied by separate occupiers, subject to subsidy control rules.
137. Where there may be links between businesses occupying different properties, the onus is on the applicant to provide sufficient evidence that the businesses are run independently of each other.
138. Payday lenders ceased to be eligible for SBBS from 1 April 2014. Advertisements, car parks and betting shops ceased to be eligible for SBBS from 1 April 2023. To determine eligibility, local authorities may, for example, adapt their application form to request a lender’s applicable interest rate, visit the property to establish whether payday lending or another excluded purpose is taking place, or use local knowledge.
139. From 1 April 2020, unoccupied properties are not eligible for SBBS. 
140. Worked examples for Small Business Bonus Scheme relief may be found in Annex D.
141. If backdated relief is applied for, local authorities will need to establish whether the applicant has been liable for the property’s rates for the period in question (they may request supporting evidence from the applicant), and also the applicable relief legislatively provided for relating to different time periods. There is no statutory time limit for which the award of SBBS can be backdated, other than the commencement of the respective legislative provisions.
142. This relief is mandatory and 100% funded by the Scottish Government.
143. It is unlikely that this relief would be considered a subsidy as it is a general measure.