Question reference: S6W-07504
- Asked by: Colin Beattie, MSP for Midlothian North and Musselburgh, Scottish National Party
- Date lodged: 22 March 2022
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Current status: Answered by Tom Arthur on 8 April 2022
Question
To ask the Scottish Government what information it has on the most recent levels at which business rates begin to be paid for the rateable value of individual properties in Scotland, and how that compares with (a) England and (b) Wales.
Answer
The Scottish Budget 2022-23 ensures the lowest poundage in the UK for the fourth year in a row and supports a generous package of reliefs.
Table 1 shows the tax rates and thresholds that will apply in 2022-23.
There are also a number of rates reliefs available in each of the three countries, including up to 100% relief for small properties. Table 1 sets out the eligibility thresholds for 100% relief in each of the schemes across Scotland, England and Wales in 2022-23.
Table 1: Property rates and rates relief for small properties, Scotland, England and Wales, 2022-23
2022-23 | Scotland | England | Wales |
Basic Property Rate (‘poundage’) applies up to and including £51,000 rateable value | 49.8p | n/a | n/a |
Small Business Multiplier applies up to £51,000 rateable value | n/a | 49.9p | n/a |
Intermediate Property Rate applies from £51,001 to £95,000 rateable value | 51.1p | n/a | n/a |
Standard Multiplier which applies from £51,000 and above in England. | n/a | 51.2p | n/a |
Multiplier which applies for all properties in Wales | n/a | n/a | 53.5p |
Higher Property Rate applies above £95,000 rateable value | 52.4p | n/a | n/a |
Small Business 100% relief rateable value threshold | Up to and including £15,000 | Up to and including £12,000 | Up to and including £6,000 |
As at 1 June 2021, there were over 119,000 properties in receipt of Small Business Bonus Scheme relief in Scotland, of which over 111,000 received 100% relief. A 100% relief is available where the total rateable value of a ratepayer’s properties does not exceed £15,000.
In England, 100% Small Business Rates Relief (SBRR) is available where an organisation has only one property. If an organisation acquires a second property, the existing relief will only remain for 12 months unless other properties have a rateable value less than £2,900 and the total combined rateable value is less than £20,000 (£28,000 in London).
In Wales, the equivalent SBRR relief is limited to two properties per organisation in each local authority area with the £6,000 threshold applied to each individually rather than collectively. There is no cumulative rateable value threshold.