Scottish Finance Secretary John Swinney yesterday announced in his 2012-13 Scottish budget changes which will have an impact on non domestic rates payments for ratepayers in Scotland from 1 April 2012.

New UBR 45 pence per £ RV

The non domestic Uniform Business Rate for 2012-13 has been increased to 45p in the pound of rateable value effective from 1 April 2012 in line with England.

Large Business UBR 45.8 pence per £ RV

The large Business Supplement which applies to properties with a rateable value over £35,000 and which is currently 0.7p will increase to 0.8p in the pound of rateable value from 1 April 2012 again in line with England.

Large Retail Stores UBR 55.1 pence per £ RV

A new Public Health Supplement has been announced for retail properties where the rateable value is on or over £300,000 and which are licensed to sell alcohol and registered for the sale of tobacco. The supplement which will apply for the next 3 years will be 9.3p effective from 1 April 2012 and then increasing to 13p for the years 2013-14 and 2014-15.

The Scottish Government has announced that a rates deferral scheme will be put in place to assist ratepayers, however, detail and guidance on how this will operate in practice has still to be published.

Ken McCormack, Head of Business Rates at James Barr commented:

“The increases are in line with our expectations. However the introduction of an additional levy on major retail stores has been the subject of strong representations from Retailers who will no doubt be closely scrutinizing the small print in the legislation now being drafted. Concerns still surround the definitions of where and how the sale of alcohol and tobacco takes place and whether this temporary measure eventually becomes a wider more permanent levy following review after the initial 3 year period.”

For more information, please contact Kenneth McCormack