Non-Domestic Rates (Coronavirus) (Scotland) Bill - Financial Memorandum
Overview
Non-domestic rates, also known as Business Rates, are a form of property tax which help pay for local council services. The amount of tax paid is based on the ‘rateable value’ of the property. The ‘rateable value’ of a property is based on comparable rental values a few years before the valuation is taking place. Rateable values are reviewed every few years at a ‘revaluation’. The next revaluation will take place in 2023 and will be based on rental values in 2022.
The Bill states that any potential effect of coronavirus cannot be considered when calculating a property’s ‘net annual value’ and/or ‘rateable value’, in the current valuation roll (created in 2017). The ‘net annual value’ of a property is based on how much a person would pay in rent for the property per year. The Bill states that this covers any matters arising from coronavirus from 2 April 2020 onwards.
Financial Memorandum
As with all Bills, the Finance and Public Administration Committee invites written evidence on the estimated financial implications of the Bill as set out in its accompanying Financial Memorandum (FM).
Read the FM for this Bill: Financial Memorandum.
Your views
The Committee call for views on the Bill's FM closed on 7 February 2022.
The Committee received 3 submissions to the call for views. Read the submissions received on Citizen Space.
The Committee has agreed to forward the submissions to the Local Government, Housing and Planning Committee as part of that Committee's consideration of the Non-Domestic Rates (Coronavirus) (Scotland) Bill and to take no further action.