The Scottish Government has published its Budget 2021-22. Below is a summary of announcements that may be of interest to charities.

• No income tax raise
• Personal allowance rise to £12,750 delayed
• Reintroduction of the Land and Buildings Transaction Tax after nil-rate in response to covid
• Business rates: reducing the Basic Property Rate (‘poundage’) to 49 pence
• The business rates holiday for retail hospitality and leisure is being extended by three months

The following reliefs will be available, funded via the Budget:

• The rateable value upper threshold in order to qualify for Fresh Start Relief will be increased from £65,000 to £95,000 to match the Higher Property Rate threshold. This relief encourages the use of empty property by offering 100% relief for up to twelve months to properties that have been empty for six months or more
• Business Growth Accelerator (BGAc) relief will be expanded to property improvements where there has been a concurrent change of use to incentivise the re-use of existing assets. This component of BGAc that any increases in Non DR due to improvements to, or the expansion of, existing properties will not take effect until twelve months after those changes are made to the property. Unoccupied new builds will be able to claim BGAc relief for up to three years, providing certainty to investors and developers.
• One hundred per cent Day Nursery Relief for all standalone nurseries in the public, private and charitable sectors will be extended to at least 30 June 2023.
• Where district heating networks are powered by renewables, as part of the Heat in Building Strategy, the District Heating Relief will be expanded to offer 90% relief instead of 50% for new District Heating networks. The 90% relief will be available to 31 March 2024.
• Discretionary sports club relief will be subject to new statutory guidance, subject to parliament, from 2021-22, to ensure that it supports affordable community-based facilities, as recommended by the independent Barclay Review of non-domestic rates.
• The following reliefs will also be maintained: charitable rates relief, disabled rates relief, district heating relief; empty property relief; Enterprise Areas relief; hardship relief; new fibre relief; renewable energy relief; reverse vending machine relief; rural relief; Small Business Bonus Scheme relief; and Transitional Relief.

Spending and Budgets

• Digital connectivity spending up from £63.4m to £102.7m
• Third Sector budget up from £24.6m to £26.1m
• OSCR budget up from £3.3m to £3.6m*
• Housing Regulator up from £4.3m to £5.1m*
• Historic Environment Scotland up from £42.8m to £55.9m

*Need Scottish Parliament approval