Legislation to correct an error in law for owners of unoccupied
properties' liability to pay non-domestic rates has been
published.
The Non-Domestic Rates (Scotland) Act 2020 devolved to councils
the power to provide discounts to owners of unoccupied properties
from 1 April 2023.
However a legislative error has been identified in amendments
made to that Act during its Parliamentary procedure, meaning
there has been no legal basis to levy non-domestic rates on
unoccupied properties since 1 April 2023.
If passed, the Non-Domestic Rates (Liability for Unoccupied
Properties) (Scotland) Bill will apply the necessary changes
retrospectively for all levies charged since April 2023.
Subject to the parliamentary timetable, a vote could be held on
Thursday.
Public Finance Minister said:
“This Bill will bring the statute book into line with
Parliament's intention to devolve Empty Property Relief to local
authorities, and with the way the non-domestic rates system has
been operating in practice since 1 April 2023.
“There will be no change to rates bills as a result of this
legislation and the Bill will not introduce any additional new
costs to businesses or individuals compared to the Scottish
Parliament's original intended policy.”
Background
Non-Domestic Rates
(Liability for Unoccupied Properties) (Scotland) Bill
The Bill will enable charging of non-domestic rates on owners of
unoccupied non-domestic property, subject to any reliefs that
local authorities may choose to put in place, backdated until 1
April 2023. This was the intended effect of the Non-Domestic Rates (Scotland)
Act 2020, providing greater fiscal powers to councils.
While section 19(2) of the 2020 Act repealed section 24 of the
Local Government
(Scotland) Act 1966 which stated no rates were payable for
unoccupied non-domestic property, the effect of section 16 (1) of
the Valuation and Rating
(Scotland) Act 1956, which sets out that rates shall by
payable by occupiers only, was not taken into account. Without
fresh legislation to make the position regarding empty properties
clear, rates paid by owners of unoccupied property since 1 April
2023 would need to be refunded. This Bill seeks to protect
revenue already collected for public services in line with the
Scottish Parliament's vote in 2020.
