The Act Part 2 – Administration and enforcement of non-domestic rates Section 18 – Power to reduce or remit rates for certain organisations: guidance
88.As explained in paragraph 84, section 4(5) of the 1962 Act allows rating authorities to grant relief in respect of certain lands and heritages – including, under paragraph (c) of that section, lands and heritages occupied for the purposes of a club, society or other organisation not established or conducted for profit and used wholly or mainly for the purposes of recreation.
89.Section 18 of the Act inserts a number of new subsections into section 4 of the 1962 Act, as follows. New subsection (7A) gives the Scottish Ministers power to issue guidance to rating authorities about the exercise of their discretion to grant relief under section 4(5)(c) of the 1962 Act. The power also covers subsections (6) to (7) of section 4, which deal with the period for which relief under subsection (5) may be granted. So, for example, guidance could recommend that certain types of organisation falling within subsection (5)(c) be granted relief only for periods recommended in the guidance. Subsection (7B) requires rating authorities to have regard to any guidance issued under subsection (7A).
90.Subsections (7C) to (7J) make supplementary provision in relation to guidance under subsection (7A), covering matters such as publication and revision of the guidance and Parliamentary approval of the guidance. In particular, subsection (7D)(b) requires the Scottish Ministers to consult on guidance under subsection (7A) before it is issued, and subsection (7D)(a) requires a draft of the guidance to be laid before the Scottish Parliament. Subsection (7E) provides that the guidance may not be issued until a period of 40 days, starting with the laying of the guidance, has expired. Subsection (7F) prohibits the Scottish Ministers from issuing the guidance if the Scottish Parliament decides, within that period, that it should not be issued. To enable guidance to be issued as soon as possible after section 18 of the Act comes into force, new subsection (7H) allows any consultation undertaken prior to that date to satisfy subsection (7D)(b).