Certain types of non-domestic rates relief are affected by the Subsidy Control Act 2022.
All public authorities must have regard to the Act as well as commitments set out in other international trade agreements.
Certain non-domestic rates reliefs, like other subsidy or support measures, may be subject to the conditions set out below. Not all reliefs are impacted by the Act and we will only ask for relevant additional information where appropriate.
The Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2023 sets a limit on the aggregate financial amount that can be awarded in the form of specific reliefs to any business over a specified period.
Minimal Financial Assistance (MFA) threshold
MFA allows public authorities to award low value subsidies without the need to comply with the majority of the subsidy control requirements.
MFA has a financial threshold which allows recipients to receive up to £315,000 over three financial years (the current financial year and the two financial years immediately preceding the current financial year).
The specified non-domestic rates reliefs that are subject to these measures are
- Renewable Energy relief
- Enterprise Areas relief
- Telecommunications New Fibre Infrastructure relief
- Rural relief
- District Heating relief
- Transitional relief in respect of the 2017 revaluation
- Day Nursery relief
- Retail, Hospitality and Leisure relief awarded in 2022/23
- Parks Transitional relief
Relevant application forms for these reliefs will detail the additional criteria required from you. Where relief is given, the MFA offered is the amount of relief shown on your bill. A written record must be kept for at least three years beginning with the date on which the MFA was given. This is to enable you to respond to future requests on how much MFA you have received and whether you have reached the cumulative threshold.
To ensure compliance with the subsidy regime we may be required to cap amounts that you are granted in the form of these reliefs and this may depend on:
- whether or not you have an interest in any business with other properties which is in receipt, or eligible, for one of the existing rate relief schemes
- the level of other public sector assistance received by the economic actor making the application
Transparency requirements
The transparency rules set out in the Act require public authorities to upload details of both subsidy schemes and awards to the UK Governments Subsidy Database. Transparency obligations apply regardless of any information that a beneficiary believes is commercially sensitive.
All subsidy awards which exceed £100,000 are required to be uploaded to the database.
Further information on Subsidy Control and Minimal Financial Assistance is available from the Scottish Government website.