32.This section sets out how the levy is charged and at what rate. At a basic level, this is done by taking the applicable rate of the levy and multiplying this rate by the floorspace area (in square meters) of the new residential unit for which there has been a building control event.
33.As a result of the system of reliefs and allowances in this Part, not all building control events are chargeable to tax. Subsection (1) therefore sets out that the levy is to be charged only on what is identified as a taxable building control event. Further detail on the steps required to identify a taxable building control event is contained in section 10.
34.Subsection (2) provides that the rate (or different rates) of the levy applicable is to be set by the Scottish Ministers under regulations (subject to affirmative procedure under section 48). The rate or rates set out in these regulations may be different based on geographic area, types of land where the properties are located, or any other factors deemed appropriate by Ministers.
35.Subsection (5) provides that the Scottish Ministers may also make regulations in relation to the methodology for determining the area in square meters of a relevant residential property. Subsection (6) elaborates what may be included in the regulations. The regulations may set out general or specific rules, what parts of a building may be excluded and appropriate measurement techniques (for example actual measurements or measurements taken from plans).
Commentary on Provisions Part 3 – Calculation and Use of Levy Section 9: Charging and rate of levy