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

Sports club relief

144. The key legislation is section 4(2)(aa) (mandatory relief) and 4(5)(c) (discretionary relief) of the Local Government (Financial Provisions etc.) (Scotland) Act 1962.
145. Properties occupied by a Community Amateur Sports Club (CASC) registered with HM Revenue and Customs,[1] for the purposes of that club, or for the purposes of that club and of other clubs which are, or are entitled to be, registered as a CASC, are entitled to 80% mandatory rates relief under section 4(2)(aa) of the Local Government (Financial Provisions etc.) (Scotland) Act 1962. Note that OSCR-registered charities may also claim 80% mandatory relief under section 4(2)(a) of the Local Government (Financial Provisions etc.) (Scotland) Act 1962. Where these are sports clubs, it would be considered that they are applying for Sports Club Relief.
146. The mandatory element of this relief is 100% funded by the Scottish Government.
147. The local authority also has discretion to ‘top up’ this relief to 100%.[2] This element of the relief is 75% funded by the Scottish Government. This means that a property receiving 80% mandatory relief and a 20% discretionary top up would see this relief 95% funded by Scottish Government (80*100 + 20*75).
148. Properties occupied by certain other sports clubs that are not CASCs or registered charities are eligible to receive up to 100% relief at the discretion of the local authority.[3] Any such relief, whilst it is discretionary, is 100% funded by the Scottish Government. From 1 April 2021, councils must have regard to the statutory guidance set out in Local Government Finance Circular No. 3/2021 when awarding this relief.
149. Local authorities must have regard to subsections (6) to (7) of section 4 of the 1962 Act with regards to how award of a relief may be granted or modified/terminated.
150. As the activity is non-economic in nature, this is unlikely to be considered a subsidy.