On 1 April 2018, the Scottish government introduced the Business Growth Accelerator (BGA). This is a relief that provides a tax holiday from business rates for new build properties for 12 months after they are first occupied. It also ensures that businesses will not see rates increases from improvements to an existing property until one year after the work is completed.
BGA has been designed to remove barriers to investment and allows new ventures to get off the ground by removing their rates burden at the initial stages.
The government also announced an expansion to the Fresh Start relief. This provides 12 months of 100% rates relief to all newly occupied properties, with rateable values below £65,000, that have previously been vacant for 6 months or more.
This encourages the reoccupation of previously vacant property and allows businesses which take on these properties to reduce their costs in the first year.
Finance Minister Kate Forbes leads on business rates policy for the Scottish government and wants to spread awareness among members about these reliefs, which will be advantageous for businesses looking to expand their current commercial property or move into unoccupied properties.
The business rates reliefs are unique in the UK and are designed to provide a competitive advantage in Scotland and help attract investment. The government reports that discussions with businesses indicate that these reliefs are attractive and will encourage businesses to set up in Scotland.
The CBI welcomes policy changes that will help to incentivise local investment, as part of its campaign to bolster productivity in the region.