Following the revaluation of Business Rates in 2017 the Scottish Government introduced new legislation which offers a level of protection to some businesses within the hospitality industry that have experienced the biggest increase in their Rates bills.
The Transitional Relief scheme has now been extended for financial year 2022-23, for specific types of properties.
The properties eligible for relief are those that are wholly or mainly used for one of the following specified purposes:
- Bed and Breakfast Accommodation
- Camping Site
- A Caravan
- A Caravan Site
- Chalet and Holiday Hut
- Guest House, Hotel and Hostel
- Public House or Nightclub (subject to certain licensing criteria)
- Self Catering Holiday Accommodation
- Timeshare Accommodation
The relief will limit any increase in the gross bill for the 2022-23 financial year to 2.247% in real terms (adjusted for inflation) based on the gross bill as at 31 March 2017.
Subsidy Control Rules
This type of relief is capped under The Non-Domestic Rates (Restriction of Relief)(Scotland) Regulations 2021 and can only be awarded as TCA de minimus as the activity is commercial in nature and the recipients receive an advantage on a selective basis due to the geographic restrictions that apply.