Non-Domestic Rates

The occupier of a non-domestic property normally pays rates - usually this is the owner-occupier or tenant. If a property is empty, the owner or tenant may have to pay a reduced rate depending on the rateable value, what the property was last used for and how long it has been empty.

What is a non-domestic property?

Non-domestic properties are properties such as shops, offices, warehouses and factories, and any other property that is not classed as domestic property. In some cases, properties may be used for both domestic and non-domestic use (for example, a Guest House or Hotel) in which case both Council Tax and Non-Domestic rates will be charged. It is the Assessor who determines the classification of properties i.e. domestic and non-domestic.

What if I own a Holiday Home or a Bed and Breakfast Establishment?

Unless you plan to make your holiday home available for let for at least 140 days a year, you will not have to pay Non-Domestic rates on the property. You will have to pay Council Tax instead.

If you offer bed-and-breakfast accommodation to no more than six people, you will not be liable for Non-Domestic rates as long as you are living in the property. You will pay Council Tax instead.

If you hire out your holiday home for more than 140 days a year or you provide bed-and-breakfast for more than six people at any one time, you will have to pay Non-Domestic rates. You will also pay Council Tax on the part of your property you use as your home.

Are any non-domestic properties exempt from Non-Domestic rates?

Some types of property such as agricultural land and buildings, fish farms, fishing, and sporting rights are exempt from entry in the Valuation Roll. This means that these properties are not liable to pay Non-Domestic rates.

How much will I have to pay?

The Comhairle is responsible for issuing rates bills to the occupiers of non-domestic properties in the Western Isles. Non-Domestic rates are levied on the basis of a national poundage rate, set by the Scottish Executive. This is multiplied by the rateable value of the property you occupy.

The poundage rate for 2007-08 is 45.8 pence for properties with rateable values up to £29,000 and 46.2 pence where the rateable value is more than £29,000.

Small Business Bonus Scheme

The Small Business Bonus Scheme will replace the Small Business Rates Relief Scheme with effect from 1 April 2008.

The Small Business Bonus Scheme is intended to provide relief for each of Scotland’s small businesses whose premises have a combined rateable value of £15,000 or less. The £15,000 upper limit was deemed to represent the best balance between affordability and helping the largest number of businesses which would benefit the most.

If a business has a single property in Scotland with a rateable value exceeding £15,000 (occupied and/or vacant) or several properties in Scotland (occupied and/or vacant) with a combined rateable value exceeding £15,000, then the business will not be eligible for the Small Business Bonus Scheme.

Businesses are required to apply to each local authority in which the business has a property in Scotland. Businesses will have to provide details of all properties owned, leased and (where vacant) entitled to occupy in Scotland.

To determine the exact amount of relief to be awarded, the Comhairle requires complete, accurate and up-to-date information on each of the business’s properties in Scotland. To apply please contact the address shown below.

STATE AID
Rate relief or remission may be classed as State Aid and there is currently a ceiling of 200,000 Euros (around £143,000) of de minimis aid that can be granted over a three year period. If you consider that you have already received in excess of, or close to, this as rate relief and/or funding from any public body over the past three years, please contact us with details.

If you wish further information regarding the Small Business Bonus Scheme you can view a leaflet at http://www.scotland.gov.uk or below :-

The Revenues Section, Council Offices, Sandwick Road, Stornoway, HS1 2BW
Phone: 01851 709569
Email: rates@cne-siar.gov.uk

How often do revaluations take place and why do we have them?

A revaluation of Non-Domestic subjects in Scotland is carried out every five years by the Scottish Assessors. The principal purpose of a revaluation is to ensure that the distribution of the rates burden between ratepayers remains equitable.

The next Non-Domestic rates revaluation will take effect from 1 April 2010.