Finance Secretary Derek Mackay confirmed the government is capping increases in business rates below inflation at 2.1%, so that 90% of properties will pay a lower poundage than in other parts of the UK. The proposed Uniform Business Rate for 2019/20 will be 49p, and the 2.6p large property supplement for rateable values in excess of £51,000 will also be maintained. Derek Mackay similarly announced the switch from RPI to CPI for the duration of this parliament.
The continuation of transitional relief for the hospitality industry and Aberdeen City and Shire offices for a further 3 years was also established.
The government has ruled out the introduction of an out-of-town levy at this time.
The government further confirmed their intention to continue with the following policies from the Barclay Review:
- The New and Improved Property Relief scheme will continue in 2019/20, providing rates relief to those who move to new builds or improved properties.
- A commitment to move to three yearly revaluations from 2022, with rental valuations based on market conditions at a tone date one year prior.
Lynsey Russell, Associate at Ryden, comments: “The government’s proposals to set the Uniform Business Rate for 2019/20 at 49p represents a below inflation increase and is welcomed to lessen the impact of rates on hard pressed firms. This move combined with the rates relief that is on offer within the New and Improved Relief scheme will hopefully have the effect of stimulating new developments within Scotland. The rating team here at Ryden are well placed to advise on this relief and can help ensure it is secured and applied appropriately."
For more detailed advice on business rates contact:
Central & South Scotland
0141 270 3148