THE NON-DOMESTIC RATING (PAYMENT OF INTEREST) (SCOTLAND)
REGULATIONS 1992: INTEREST RATE FOR 2005-06
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Finance and Central Services
Department
Local Government Finance & Local
Funding Division Finance Circular No 4/2005
By E-mail Chief Executives, Scottish Local
Authorities Copy to: Directors of Finance
Heads of Revenue
COSLA | Victoria Quay Edinburgh EH6 6QQ Telephone: 0131-244 7011 Fax: 0131-244 7020 Anna.gilbert@scotland.gsi.gov.uk http://www.scotland.gov.uk Your ref: Our ref: ZCA 10/1;ZCB 4/2/2005; ZCF 26/1 15 March 2005 |
Dear Sir/Madam
THE NON-DOMESTIC RATING (PAYMENT OF INTEREST)
(SCOTLAND)
REGULATIONS 1992: INTEREST RATE FOR 2005-06
1. I am directed by the Scottish Ministers to draw your
attention to the interest rate to be applied for 2005 06 in
calculating the interest due when repaying overpaid rates
following alterations to the valuation roll.
2. The appropriate rate is set by regulation 4(2) of the
above Regulations at 1% below the bank base rate on the
preceding 15 March. The relevant base rate on that date was
4.75 % so the interest rate to be applied from 1 April 2005 to
31 March 2006 will be 3.75 %
3. The rates of interest on overpayments in respect of
previous years remain at 5.75% for 1995 96; 5% for 1996 97; 5%
for 1997 98; 6.25% for 1998 99; 4.5% for 1999 2000: 5% for 2000
01; 4.75% for 2001-02; 3% for 2002-03; 2.75% for 2003-04; 3%
for 2004-05; and 3.75 % for 2005-06.
THE BENEFICIAL PORTION OF NON-DOMESTIC RATES IN
RESPECT OF ACCREDITED DIPLOMATIC MISSIONS AND CERTAIN
INTERNATIONAL ORGANISATIONS
4. Essentially the "beneficial portion" is a portion of the
local rates payable on the property occupied by the Diplomatic
Mission and International Organisations from which the occupant
derives a benefit. The beneficial services cover things like
street cleaning, lighting etc. Finance Circular No 3/2002
paragraph 4 advised that the Beneficial Portion for the period
1 April 2000 to 31 March 2005 would remain at 6%.
5. The intention was that the beneficial portion reviews
-undertaken by the Valuation Office Agency -would be carried
out every five years to tie in with the non domestic rating
revaluations. Given that the 2000 review did not take place
until 2002, we have been advised by the Valuation Office Agency
that the next review will not take place until 2007.
6. The Beneficial Portion in respect of accredited
Diplomatic Missions and some International Organisations will
therefore continue at the present level of 6% for the period 1
April 2005 to 31 March 2007.
7. This Circular has been copied to your Director of
Finance, Head of Revenue (or equivalent) and COSLA.
8. Any enquiries about this Circular should be directed to
me at the above address.
Yours faithfully
Anna E Gilbert
ANNA E GILBERT