The Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Bill - Business and Regulatory Impact Assessment

Introduction

The Non-Domestic Rates (Scotland) Act 2020 (“the 2020 Act”) made changes to the law relating to non-domestic rates (NDR). One of the changes was intended to devolve Empty Property Relief (EPR) to local authorities from 1 April 2023 and create a situation whereby owners of unoccupied properties would be liable to pay NDR on such property, and local authorities could then reduce their bills (known as ‘relief’) as they considered appropriate.

It has recently been identified that the amendments made by the 2020 Act to devolve EPR have not had the intended legal effect, and there has been no legal basis for imposing liability upon the owners of unoccupied properties since 1 April 2023. This means that any NDR paid by these ratepayers on such properties since 1 April 2023 have been charged without a valid legal basis and the affected ratepayers are, in principle, entitled to a refund of these rates.

Primary legislation is required to rectify this issue and provide a legal basis to levy rates on the owners of unoccupied non-domestic properties. The Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Bill (“the Bill”) is intended to deliver the original policy intention to devolve EPR to local authorities from 1 April 2023, and provide a statutory basis for the established position with retroactive effect from 1 April 2023 - that liability for rates in respect of unoccupied properties falls upon the owner, subject to any reliefs that local authorities may choose to put in place under existing discretionary powers.

This is a final BRIA to accompany the Bill.