Non Domestic (Business) Rates Deferral Scheme 2012-13
The Scottish Government has introduced an opt-in non-domestic (business) rate deferral scheme for 2012-13. Under this scheme rate paying businesses in Scotland will be able to defer payment of part of the increase in their 2012-13 business rates bills as a result of the 5.6% increase in the poundage until 2013-14 and 2014-15. In practice this deferred amount is equal to 3.2% of the 2012-13 bill, which will be repaid half in 2013-14 and half in 2014-15. Further details of the deferral scheme are available within the Local Government Finance Circular No. 2/2012 and within the Scottish 2012-13 Business Rates Deferral Scheme Leaflet. Please also see the example application form, however, you should note that your application form should be sent to your local authority and their application form may differ from our example which is for information only.
The Poundage (pence in the pound) Rate that will apply in Scotland from April 2012 will be 45p. For property with a rateable value over £35,000 a small supplement of 0.8p will also apply. In addition large retail properties with a Rateable Value on or over the threshold of £300,000 which sells both alcohol and tobacco will also be required to pay the Public Health Supplement of 9.3p. The Small Business Bonus Scheme (SBBS) will continue throughout 2012-13.
Spending Review 2011: Open Letter Scottish Business
Cabinet Secretary for Finance, Employment and Sustainable Growth John Swinney has today published a letter to businesses on actions the Scottish Government is taking to accelerate sustainable economic growth and to support Scottish business.
In the letter he states how the budget supports growth, creates jobs and maintains the most generous package of reliefs available to business anywhere in the UK, worth on average more than £500 million per annum over the 2010-15 revaluation cycle.
Publication of an analysis of business rates in Scotland,
The Scottish Government published on 14 May 2010 an analysis of business rates in Scotland, which shows almost 60 per cent of ratepayers have seen their bills fall or remain the same from April 1.
The analysis, carried out since changes came into effect following the recent revaluation of business rates, shows Scotland's small businesses are significant beneficiaries of the Scottish Government's decisions.
In contrast, an estimated 79 per cent of all ratepayers would have been worse or no better off had the Scottish Government decided to introduce a transitional relief scheme similar to that in England. In particular, 63 per cent of properties in the hotels sector would have been worse or no better off with such a scheme.
Other key findings are that, before the impact of the Scottish Government's rates relief package is taken into account:
The private sector has, with just under 60 per cent, the greater proportion of ratepayers seeing their bills decrease or stay the same as a result of revaluation, compared with just 26 per cent in the public sector.
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A traditional transitional relief scheme would have resulted in an estimated transfer of funds from a large part of the private sector, amounting to almost £77 million in 2010-11 alone, to cushion the rates bill increases for the public sector and a relatively small number of large businesses in the private sector.
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Through transitional relief an estimated 81 per cent of small and medium sized rate-paying businesses in the private sector would have been worse or no better off, compared to an estimated 51 per cent in the public sector being better off.
A copy of the full report is available here
Non Domestic Rates
Non domestic rates are a property based tax. They are based on the rateable value of a non-domestic (business) property, multiplied by a poundage set nationally by Scottish Ministers, less any relief to which a ratepayer may be eligible.