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Non-Domestic Rates - Rural Relief

General Information

On 1st April 2003, the Scottish Government introduced new legislation to assist to a number of classes of farm-based businesses. Two years later, on 1st April 2005, the thresholds for qualification were subsequently uprated. Details of these reliefs, and how to apply, are listed below.


 
Machinery Rings and Shared Farming Enterprises 

Agricultural buildings which are used by agricultural businesses in connection with machinery rings, contract farming and share farming enterprises may be entitled to rate relief. This relief only relates to buildings occupied in connection with agricultural activity. Entitlement to this relief will not extend to similar, but non-agricultural, businesses.

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New Farm Diversification Enterprises

To promote farm diversification enterprises, buildings taken out of agricultural use and transferred to a farm diversification enterprise may qualify for relief. Entitlement to this relief will be reliant on satisfying a number of conditions:

  • only a farmer, a farmer’s immediate family or a farm business will be entitled to relief
  • relief will only be available for new farm-diversification enterprises
  • the buildings now occupied by the new farm-diversification enterprise must have previously been in agricultural use
  • the rateable value of the building occupied by the new farm-diversification enterprise cannot exceed £7,000. If the enterprise occupies a number of separate buildings, their cumulative rateable value may not exceed this amount 
     

New farm diversification enterprises which meet these conditions may be entitled to an award of mandatory rates relief equivalent to 50% of the amount of their Non-Domestic Rates bill. The legislation currently only permits relief to be awarded for a maximum period of five years.

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Stud Farms 

The derating limit at which the rateable value of premises used for horse-breeding and horse-rearing may be reduced is to be increased £3,500. In addition to this, the Council may now make a grant of discretionary rate relief to newly-established stud farms with a rateable value which does not exceed £7,000.

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Contact Details

If you think you might be entitled to Rural Relief and would like to apply, or if you currently pay Non-Domestic Rates to the Moray Council and you would like to ask a question about this reduction, please e-mail the Moray Council's Non Domestic Rates Team.

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