This relief limits any increase in the gross bill for certain hospitality based premises to be no more than 12.5% each year, in real terms, of the gross bill as at 31 March 2017
The Scottish Government introduced a Transitional Relief scheme for Financial Year 2017/2018, for specific types of properties. The scheme has now been further extended into Financial Year 2020/21.
The properties eligible for relief are those that are wholly or mainly used for one of the following specified purposes:
- Bed & Breakfast Accommodation
- Camping Site
- A caravan
- A Caravan Site
- Chalet & Holiday Hut
- Guest House, Hotel and Hostel
- Pubic House or Nightclub (subject to certain licensing criteria)
- Renewable Energy Generation (small hydro schemes only) (for Financial Year 2017/2018 only)
- Self-Catering Holiday Accommodation
- Timeshare Accommodation
The relief limits any increase in the gross bill for the relevant Financial Years to be no more than 12.5% each year, in real terms, of the gross bill as at 31 March 2017.
For Financial Year 2020/21 no relief will apply where the rateable value of a property exceeds £1.5m
Please note the 2020/21 regulations replaced the previous regulations, with effect from 1st April 2020, meaning that no backdating of relief to reduce an earlier charge is possible.
The relief is subject to Deminimus aid (State-Aid) Rules which limits relief to a maximum of €200,000 sterling equivalent over a three year period.