Non-Domestic Rates - Investment Zone Relief
Renfrewshire Council · 11 June 2026
Back to Finance, Resources and Customer Services Policy Board — 11 June 2026 and its agenda
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PUBLIC _________________________________________________________________ To: Finance, Resources and Customer Services Policy Board On: 11 June 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Non-Domestic Rates – Investment Zone Relief 1. Summary 1.1 As part of the UK government’s plan for growth and prosperity, in Scotland, the Investment Zones (IZ) programme has been designed to encourage innovation, strengthen key industries to drive growth, reduce economic inequalities, and level up communities across the country. 1.2 Following engagement, the Scottish and UK governments reached agreement and jointly announced that there will be two Investment Zones in Scotland, and that the regions offering the most potential to host those were: • Glasgow City Region • North East of Scotland 1.3 The Glasgow City Region (GCR) Investment Zone is designed to accelerate long-term economic growth by building globally competitive innovation clusters, using the region’s existing industrial and research strengths as a foundation. Its primary sectoral focus is around advanced manufacturing. 1.4 As part of the opportunities offered within the Investment Zones, the Scottish and UK governments are offering the following tax reliefs in designated tax sites within each Investment Zone. These will be available for 5 years and include:
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PUBLIC • Land & Buildings Transaction Tax • Non-Domestic Rates Relief • Enhanced Capital Allowance • Enhanced Structures and Buildings Allowance • Employer National Insurance Contributions relief 1.5 Non-domestic rates (NDR) relief has been available from the designation date of 26 February 2026 within the specified tax site. This comprises of development plots located at Glasgow Airport and within the Advanced Manufacturing Innovation District Scotland (AMIDS), as part of the Glasgow City Region (GCR) Investment Zone programme. The detailed boundary for the GCR Tax Site is set out in this report 1.6 Businesses will potentially be eligible for certain tax reliefs on certain properties and property improvements within this tax site, the intention being that this relief supports new businesses as well as existing businesses when they expand into new or unused space. 1.7 Attached as an appendix to this paper are the proposed local operational policy arrangements required to underpin decision making regarding the NDR IZ Relief. _______________________________________________________________ 2. Recommendations 2.1 It is recommended that the Board approves the policy _______________________________________________________________ 3. Background 3.1 As stated above, a tax site has been specified at Glasgow Airport and AMIDS as part of the Glasgow City Region (GCR) Investment Zone programme. 3.2 The tax site combines serviced development land at the AMIDS Netherton Campus, as well as sites around the Airport at Abbotsinch, Airside North, and Campsie Drive (see Figure 1 below).
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PUBLIC Figure 1: IZ Tax Site Boundary 3.3 Businesses will potentially be eligible for up to 100% Investment Zone (IZ) Relief on certain properties and property improvements within this tax site, the intention being that this relief supports new businesses as well as existing businesses when they expand into new or unused space. 3.4 The attached operating policy details the legislative/authority basis for the scheme as well as the funding mechanism. 3.5 The policy also outlines the criteria which can be used to make IZ awards as well as confirming that awards will be made at the discretion of the Revenues Team within Business Services, using both the policy and Scottish Government guidance to underpin decision making. The Investment Zone Tax Oversight Committee will provide advice with regards eligibility of businesses to occupy the Investment Zone, however decision making in respect of IZ NDR relief will remain with the Council. 3.6 Within the policy statement it is confirmed that awards do not constitute Minimal Financial Assistance as defined in the UK Subsidy Control Act 2022, but there are still reporting requirements to be followed with individual relief awards of over £100k. These requirements will be the responsibility of the Council’s Revenues Team within Business Services, Risk and Safety.
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PUBLIC 3.7 The normal Non-Domestic Rates Appeals and Debt Recovery position is confirmed to apply in cases relating to IZ awards. ___________________________________________________________________ Implications of the Report 1. Financial – The Investment Zone NDR relief agreed by the Council will be funded by the Scottish Government up to a limit of £9.080m. Any relief granted beyond this will require a separate funding arrangements to be agreed, therefore it is proposed that the overall level of relief is capped at this funded amount initially, with a revised policy being required should further relief be required. 2. HR & Organisational Development – None. 3. Community/Council Planning – the Investment Zone Tax Oversight Committee Committee will be advisory to the Revenues Team to support decision making in respect of IZ Relief. 4. Legal – None 5. Property/Assets – None. 6. Information Technology – None 7. Equality & Human Rights – None 8. Health & Safety – None. 9. Procurement – None. 10. Risk – None. 11. Privacy Impact – None. 12. Climate Risk – None. 13. Children’s Rights – None. 14. Cosla Policy Position – N/A _________________________________________________________
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PUBLIC List of Background Papers • Update on Glasgow City Region Investment Zone. Economy and Regeneration Board, 21 January 2025 - Glasgow City Region Investment Zone – Update Jan 25 - AM reviewed Final version.pdf • Investment Zone - Update Report- Leadership Board, 17 September 2025 - Investment Zone - Update Report - Leadership17 09 25 -FINAL.pdf • AMIDS / Glasgow Airport Tax Site Full Business Case - Leadership Board, 29 April 2026 - AMIDS - Glasgow Airport Tax Site Full Business Case.pdf
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APPENDIX 1 PUBLIC RENFREWSHIRE COUNCIL FINANCE & RESOURCES NON-DOMESTIC RATES – INVESTMENT ZONE RELIEF OPERATIONAL POLICY 1. Background 1.1 Investment Zone Relief 1.1.1 As part of the UK Government’s plan for growth and prosperity, in Scotland, the Investment Zones (IZ) programme has been designed to encourage innovation, strengthen key industries to drive growth, reduce economic inequalities, and level up communities across the country. 1.1.2 Following engagement, the Scottish and UK governments reached agreement and jointly announced that there will be two Investment Zones in Scotland, and that the regions offering the most potential to those host were: • Glasgow City Region • North East of Scotland 1.1.3 As part of the opportunities offered within the Investment Zones, the Scottish and UK governments are offering the following tax reliefs in designated tax sites within each Investment Zone. These will be available for 5 years and include: • Land & Buildings Transaction Tax • Non-Domestic Rates (NDR) Relief • Enhanced Capital Allowance • Enhanced Structures and Buildings Allowance • Employer National Insurance Contributions relief 1.1.4 NDR is the only one of the five tax reliefs that is administered by Renfrewshire Council. The level of grant funding offered by the Scottish Government for the NDR Relief for the period of the Tax Site is capped at £9.08M. This is the total funding available for this particular relief over a 10-year period. It is at Renfrewshire Council’s discretion how this NDR relief grant funding is utilised in terms of individual applications by businesses. The tax site is shown in the table below
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APPENDIX 1 PUBLIC Table 1 – Designated Tax site 1.1.5 Businesses will potentially be eligible for up to 100% Investment Zone (IZ) Relief on certain properties and property improvements within this tax site, the intention being that this relief supports new businesses as well as existing businesses when they expand into new or unused space. Businesses can apply for NDR relief for up to a 5-year period following occupation of premises located in the Tax Site. 1.1.6 Not every business locating in the Tax Site will apply for NDR Relief. For those that do, once IZ relief has been exhausted, businesses will pay their Non-Domestic Rates charges as normal. 1.2 Legislative/Authority Basis 1.2.1 Local authorities have powers contained in section 3A of the Local Government (Financial Provisions etc.) (Scotland) Act 1962 to award discretionary local reliefs. Councils fund such reliefs. 1.2.2 On 15 December 2022, the Council approved the addition to the terms of reference of the Finance, Resources and Customer Service Policy Board as follows: • To determine the operation and policies of any locally determined Non-Domestic Rates schemes or reliefs in line with relevant legislation.
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APPENDIX 1 PUBLIC • To determine the operation and policies of any locally determined Council Tax schemes, discounts, or reductions in line with relevant legislation 1.2.3 Guidance has been prepared by Scottish Government, currently in draft form, to support councils with the application of IZ Relief. 1.3 Funding Mechanism 1.3.1 Investment Zone NDR relief will be funded via the Scottish Government General Revenue Grant. The Council will contribute any income received from business rates paid by businesses within the tax site to the pool via the annual return (NDRI) but will then be compensated via GRG. 1.3.2 Funding will be provided by Scottish Government over 10 years via the GRG even though reliefs awards may be made during the next 15 years (a business may apply late in the 10-year window then be awarded relief for the following 5 years). 2. Policy Purpose & Objectives 2.1 Purpose: 2.1.1. The purpose of this policy is to: • Underpin the Council’s commitment to providing Non-Domestic Rates relief to businesses undertaking new occupation of new or existing sites within the designated tax site after the designated date of 26 February 2026. • Specify the Council’s position in relation to the awarding of relief for properties within the designated tax site. 2.2. Policy Objectives 2.2.1. The objectives of this policy are to: • To ensure that relief is awarded appropriately to businesses moving into properties (new or existing premises) within the designated tax site.
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APPENDIX 1 PUBLIC • Provide as much guidance as possible to the Revenues Team within Business Services to ensure relief awards are made consistently, effectively, and efficiently. • Help ensure that the Investment Zone Non-Domestic Rates Relief scheme provides a positive incentive for appropriate businesses to successfully establish and thrive within the Investment Zone. 2.3. Policy Risks • Businesses may attempt to move directly from one property in Renfrewshire into the tax site to attract the new relief. • Any future increase in the value of reliefs awarded may exceed government funding. • Challenges may be made where relief is not awarded. • In common with any property in Renfrewshire, the cost of awarding reliefs for periods during Investment Zone properties are empty will require to be met by the council. 3. Investment Zone (IZ) Relief 3.1. Awarding IZ Relief 3.1.1. The maximum period of IZ relief is 5 years although this will be shortened if a business is eligible for an alternative mandatory relief (e.g., an initial award of Growth Accelerator relief for 1 year would then limit the IZ relief to 4 years). 3.1.2. IZ Relief is only available from the date of occupation of the buildings/premises. 3.1.3. A maximum of one award can be made per property, and this is triggered by the first new occupation after the 26 February 2026 (the designation date) regardless of whether the property is a new build or existed prior to the designation date. 3.1.4. The period over which IZ relief will be awarded will be a maximum of 15 years. Funding will be received over a 10-year period. Finance colleagues, supported by Non-Domestic rates technical staff within Business Services, are required to closely monitor and track the IZ awards.
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APPENDIX 1 PUBLIC 3.1.5. The decision to grant occupation within the tax site is at the discretion of the respective landowners. However, landowners are required to notify the Tax Site Oversight Committee (made up of all tax site landowners), which will then assess whether the proposed occupier aligns with the aims and objectives of the Investment Zone, namely supporting the advanced manufacturing sector, either directly or indirectly. However, awarding of IZ Relief is entirely at the Council’s discretion and that decision making function will sit within the Revenues Team within Business Services, Risk and Safety. 3.2. Awarding IZ Relief 3.2.1. Relief will be considered for up to 5 years for properties which meet any of the following criteria: a. Businesses not previously operating in the IZ tax site, which set up within the site after the designation date, this will apply only to properties which haven’t previously received IZ Relief. b. Businesses which were already operating within the IZ tax site before the date that the tax site was designated and which expand into new or unused space. c. Organisations, which expand their businesses by moving into previously unused/unoccupied space or through extending their property. In such instances as b and c above the IZ relief would only apply to the new building part or new occupation and, depending on the circumstances, may follow-on from a period of Improvement Relief which will limit the amount of IZ relief available. 3.2.2. As referenced above, the Tax Site Oversight Committee will act as the key site- level governance body for the IZ tax site. It is responsible for reviewing and recording all proposed occupiers prior to occupation to ensure they align with the strategic objectives of the Investment Zone—particularly supporting advanced manufacturing and related activities. The Committee operates as an advisory gateway, assessing strategic fit and additionality, while maintaining an audit trail of decisions through formal documentation. This governance framework ensures that any business seeking IZ NDR relief represents an appropriate and compliant use within the tax site. 3.2.3. The Revenues Team may choose to review or assess IZ awards and request any information they deem reasonable to determine whether they wish to award IZ relief, including consulting with Renfrewshire Valuation Joint Board.
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APPENDIX 1 PUBLIC 3.2.4. Other eligible relief awards will take precedence over IZ awards e.g., a charity will still receive 80% mandatory relief with only a 20% IZ top-up available following application, for the maximum of 5 years. 3.2.5. In most circumstances, if the occupation results from displacement from surrounding areas or movement within the IZ, it is unlikely that IZ Relief will be awarded. As stated previously this remains at the discretion of the Revenues Team. 3.2.6. As stated in section 1.1.4 the level of funding available from Scottish Government is £9.08M, awards will therefore be capped at that level. 3.3. Subsidy 3.3.1. Whilst awards made under the IZ scheme do not constitute Minimal Financial Assistance as defined in the UK Subsidy Control Act 2022. there are still reporting requirements to be followed with individual relief awards of over £100k. These requirements will be the responsibility of the Revenues Team. It will be the responsibility of the UK Government and the Scottish Government how such IZ relief award aligns with other fiscal incentives offered to the same applicants within the Renfrewshire Tax Site. 4. Dispute Process 4.1. Appeals 4.1.1. An appeal can be made on the grounds that the rates charged have been incorrectly calculated. All appeals must be made within 28 days of the date on the notice by writing to the Director of Finance & Resources. 4.1.2. Where an appeal is received and is wholly in relation to the award of IZ relief, a senior officer will review the case and respond to the appellant to explain that such reliefs are non-legislative and that a local policy is in place. 4.1.3. If the appellant wishes to progress the appeal thereafter, a senior officer will make a submission to the NDR Appeal Panel. 4.2. Complaints 4.2.1. Any complaints received concerning this policy will be logged, investigated, and responded to in accordance with the Council’s Complaints Handling Procedure.
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APPENDIX 1 PUBLIC 5. Debt Recovery Action 5.1.1. The Council’s normal recovery action will be taken, where appropriate. 6. Policy Review 6.1.1. It is recognised that this scheme is in its infancy, and that guidance has yet to be finalised by the Scottish Government, therefore the policy will be reviewed no later than 1 year from approval to ensure that it remains fit for purpose.