Question reference: S6W-13336
- Asked by: Alexander Stewart, MSP for Mid Scotland and Fife, Scottish Conservative and Unionist Party
- Date lodged: 20 December 2022
-
Current status: Answered by Tom Arthur on 16 January 2023
Question
To ask the Scottish Government, further to the answer to question S6W-10697 by Tom Arthur on 21 September 2022, and in light of its draft 2023-24 Budget published on 15 December 2022, how it will ensure parity with England for commercial premises liable for the higher property rate, in line with the independent Barclay Review of non-domestic rates recommendation, and its commitment in its Framework For Tax to "reduce the combined poundage rate for the largest properties to match the equivalent rate in England over the course of the Parliament".
Answer
On 1 April 2020 the Intermediate Property Rate (poundage +1.3p) was introduced for properties with rateable values between £51,000 and £95,000 which would previously have been liable for the Large Business Supplement (2.6p).
On 1 April 2023 we will further reduce the number of properties liable for the Higher Property Rate, by increasing the rateable value threshold at which this applies from £95,000 to £100,000.
Combined with the lowest poundage in the UK, these reforms mean that over 95% of non-domestic properties are already liable for a lower property tax rate than anywhere else in the UK.
Tax policy decisions are made at annual budgets in line with prevailing economic decisions.