Scotland's Listed Buildings Lose Rates Relief

Empty property relief policy in Scotland has changed. As of 1 April 2024, property owners and occupiers in Scotland, particularly those with listed and historic buildings, have faced a significant shifting of the goalposts. Local councils across Scotland (including Glasgow, Edinburgh and Aberdeen) have removed relief on empty properties, notably for listed and historic buildings.

A New Framework for rates relief

The Scottish Government has devolved rates relief policies to individual local authorities. Each council now has its own policy on rates relief. The first relief to be devolved to local authorities is Empty Property Relief (EPR) with some councils having removed rates relief for listed properties from 1 April 2023. Listed buildings have traditionally been exempt from business rates when vacant with a view to compensating owners for the high costs associated with maintaining these properties.

From 1 April this year, more councils have announced changes to their policies, with several removing empty property relief for listed property entirely. In some cases, ratepayers who have historically had no rates liability for a long-unoccupied listed property will be charged full rates from 1 April 2024. Some councils have also changed the policy for empty property relief for industrial properties.

Implications

The new policies adopted aim to reduce numbers of vacant commercial properties but it’s reasonable to assume that this will further burden the retail sector in particular and listed property owners across Scotland. This could discourage retailers and developers from operating on our high streets and lead to them looking elsewhere.

If you require any assistance interpreting the changes in policy and assessing the impact on your business please get in touch with our real estate team who will be delighted to help