Information

Local government finance circular 4/2022 - non-domestic rates relief: guidance

This circular provides general information relating to current arrangements for non-domestic rates reliefs in 2022 to 2023. It also provides examples of supporting documentary evidence. The information was compiled with the involvement of officers from COSLA and the IRRV.

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Renewable Energy Relief

141. The key legislation is the Non-Domestic Rates (Renewable Energy Generation Relief) (Scotland) Regulations 2010.

142. Eligibility for the Renewable Energy Relief relating to community benefit requires arrangements which give at least 15% of the annual profit to a community organisation, in return for investment (or, failing that, so much of the annual profit as is attributable to 0.5 megawatt of the total installed capacity)[35]. Table 3 shows the sliding scale of applicable relief against total RV of all the qualifying properties in Scotland that the applicant occupies or (if vacant) is entitled to occupy.

Table 3: Renewable Energy Relief thresholds [36]
Cumulative RV in Scotland Relief (%)
up to £145,000 100
over £145,000 and up to £430,000 50
over £430,000 and up to £860,000 25
over £860,000 and up to £4 million 10
over £4 million 2.5

143. Relief is available for subjects solely concerned with the production of heat or power (or both) from the following sources:

  • biomass
  • biofuels
  • fuel cells
  • photovoltaics
  • water (including waves and tides, but excluding production from the pumped storage of water) ("hydro schemes")
  • wind
  • solar power
  • geothermal sources

144. In addition, hydro schemes with a RV of no more than £5 million are also eligible for 60% relief.[37] This relief is available until 31 March 2032.[38]

145. This relief is mandatory and 100% funded by the Scottish Government.

146. This relief is likely to be considered a subsidy under the TCA and is subject to the MFA.

Contact

Email: NDR@gov.scot

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