Business rates in Scotland
Encyclopedia
Business rates is the commonly used name of Non-Domestic Rates
in Scotland
, a tax on occupation of non-domestic property. Rates are a property tax
used to fund local services that dates back to the Poor Law
.
in 1579 provided for a poor rate to be levied to fund poor relief. The Poor Law (Scotland) Act 1845 modernized the system, and the Lands Valuation (Scotland) Act 1854 established the foundations of the modern system.
The Valuation and Rating (Scotland) Act 1956 established a system of five-yearly revaluations, undertaken by an Assessor appointed by the local authority.
In 1989, domestic properties were removed from the rating system with the introduction of the Community Charge
in Scotland, later to be replaced with Council Tax
.
from 1990, and the Local Government Finance Act 1992
made further changes. While the latter two acts applied to the whole of the United Kingdom, as the Scottish system is based on Scots law
, it remains fundamentally different from the system in England and Wales.
Rates (tax)
Rates are a type of property tax system in the United Kingdom, and in places with systems deriving from the British one, the proceeds of which are used to fund local government...
in Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
, a tax on occupation of non-domestic property. Rates are a property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
used to fund local services that dates back to the Poor Law
Poor Law
The English Poor Laws were a system of poor relief which existed in England and Wales that developed out of late-medieval and Tudor-era laws before being codified in 1587–98...
.
History
The Poor Law introduced in ScotlandScotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
in 1579 provided for a poor rate to be levied to fund poor relief. The Poor Law (Scotland) Act 1845 modernized the system, and the Lands Valuation (Scotland) Act 1854 established the foundations of the modern system.
The Valuation and Rating (Scotland) Act 1956 established a system of five-yearly revaluations, undertaken by an Assessor appointed by the local authority.
In 1989, domestic properties were removed from the rating system with the introduction of the Community Charge
Community Charge
The Community Charge, popularly known as the "poll tax", was a system of taxation introduced in replacement of the rates to part fund local government in Scotland from 1989, and England and Wales from 1990. It provided for a single flat-rate per-capita tax on every adult, at a rate set by the...
in Scotland, later to be replaced with Council Tax
Council tax
Council Tax is the system of local taxation used in England, Scotland and Wales to part fund the services provided by local government in each country. It was introduced in 1993 by the Local Government Finance Act 1992, as a successor to the unpopular Community Charge...
.
Scope
The Local Government Finance Act 1988 amended the existing rating system in Scotland from 1990 at the same time as introducing a new system of business rates in England and WalesEngland and Wales
England and Wales is a jurisdiction within the United Kingdom. It consists of England and Wales, two of the four countries of the United Kingdom...
from 1990, and the Local Government Finance Act 1992
Local Government Finance Act 1992
The Local Government Finance Act 1992 includes obligations of the occupants or the owners of properties in the United Kingdom to pay council tax.- External links :*...
made further changes. While the latter two acts applied to the whole of the United Kingdom, as the Scottish system is based on Scots law
Scots law
Scots law is the legal system of Scotland. It is considered a hybrid or mixed legal system as it traces its roots to a number of different historical sources. With English law and Northern Irish law it forms the legal system of the United Kingdom; it shares with the two other systems some...
, it remains fundamentally different from the system in England and Wales.
See also
- Local income taxLocal income taxThe Scottish Government planned to bring forward legislation to replace the council tax with a local income tax , as part of the funding for Scottish local authorities....
- Business rates in England and Wales
- Taxation in the United KingdomTaxation in the United KingdomTaxation in the United Kingdom may involve payments to a minimum of two different levels of government: The central government and local government. Central government revenues come primarily from income tax, National Insurance contributions, value added tax, corporation tax and fuel duty...
- RatesRates (tax)Rates are a type of property tax system in the United Kingdom, and in places with systems deriving from the British one, the proceeds of which are used to fund local government...
- Local government in the United Kingdom:Funding