The Scottish Government introduced new legislation in February 2023 that deals with a number of new and amended Non-Domestic Rates policies from 2023 to 2024 onwards.
The following changes to Non-Domestic Rates came into effect from 1 April 2023.
Poundage for 2024 to 2025
2023 was a revaluation year and the majority of rateable values changed as a result of the revaluation.
Your 2024 to 2025 rates bill will be calculated using the 1 April 2023 rateable value multiplied by the appropriate poundage.
|
Rateable value |
Poundage |
|---|---|
|
up to £51,000 |
49.8 pence (basic property rate) |
|
£51,001 to £100,000 |
54.5 pence (including intermediate property rate of 4.7 pence) |
|
£100,001 and above |
55.9 pence (including a higher property rate of 6.1 pence) |
Revaluation Transitional Relief
A Revaluation Transitional Relief was introduced to cap increases in rates liabilities due to revaluation. The caps (in cash terms) in 2024 to 2025 will be
- 25% for small properties
- 50% for medium-sized properties
- 75% for large properties
rising in subsequent years. Further detail is set out in the table below.
Year-on-year Scottish 2023 Revaluation Transitional Relief caps (%)
|
Rateable Value |
2023 - 24 |
2024 - 25 |
2025 - 26 |
|---|---|---|---|
|
Small (up to £20,000) |
12.5 |
25 |
37.5 |
|
Medium (£20,001 to £100,000) |
25 |
50 |
75 |
|
Large (Over £100,000) |
37.5 |
75 |
112.5 |
Small Business Bonus Scheme relief
The Small Business Bonus Scheme (SBBS) relief has been reformed.
- 100% SBBS relief continues to be available for properties with a rateable value of up to £12,000.
- The upper rateable value threshold for individual properties to qualify for SBBS relief has been extended from £18,000 to £20,000.
- Relief will taper from 100% to 25% for properties with rateable values between £12,001 and £15,000; and from 25% to 0% for properties with rateable values between £15,001 to £20,000. The cumulative rules including the rateable values threshold of £35,000 remains.
- Car parks, car spaces, advertisements and betting shops will be excluded from eligibility for SBBS from 1 April 2023.
Small Business Transitional Relief
A Small Business Transitional Relief has been introduced for those losing or seeing a reduction in Small Business Bonus Scheme Relief or Rural Rates Relief (including due to SBBS exclusions) on 1 April 2023. The maximum increase in the rates liability relative to 31 March 2023 will be capped at £600 in 2023 - 2024, rising to £1,200 in 2024-25 and £1,800 in 2025 to 2026.
Other changes from 2023 onwards
- Prescribed plant and machinery used for onsite renewable energy generation and storage will be exempt from rating from 1 April 2023 - 31 March 2025.
- Properties in receipt of Business Growth Accelerator relief on 31 March 2023 will continue to be eligible for an equivalent percentage of relief on the new rateable value for the remaining duration of the relief.
- Properties in receipt of Fresh Start relief on 31 March 2023 will continue to receive relief for the remaining duration of the relief, regardless of whether the new rateable value is above the qualifying threshold. From 1 April 2023, the rateable value to which properties qualify for Fresh Start relief will increase from £95,000 to £100,000.
Business Rates reports
Download Business Rates data (XLSX - 1 MB)
Download Business Rates credit list (XLSX - 500KB)
How Business Rates are set
The National Business Rate is set by the Scottish Government. Find the Business Rates guidance and calculator on Scottish Business portal.
Check your business property rateable value
Moving your business
Let us know when you move your business so that we can calculate your charges.
Important tax information for tenants of commercial property
Devolved tax legislation implemented on 1 April 2015 mean that some tenants in Scotland must, by law, submit a new tax return to Revenue Scotland every three years to ensure they have paid the correct amount of LBTT. The first time a 3 year lease review return became due was therefore 2018.
A return has to be submitted
- every three years from the effective date of the lease
- at the point where the lease is assigned
- at the point where the lease is terminated.
It is the responsibility of the tenant to submit the return even if the lease has not changed or if no tax is due. Failure to do so will result in a penalty.
For further information please visit Revenue Scotland Lease.
Disclaimer
The personal information collected from you as part of the Council’s statutory duty to collect Non-Domestic Rates will be held and processed for this purpose. In undertaking this processing the Council is relying on the Condition of Processing in Article 6 (1) (c) of the General Data Protection Regulations as it is being processed as part of the Council’s duty to comply with a legal obligation. This personal data will also be shared with Lothian Valuation Joint Board to assist them in the process of valuing business properties. Your information will be held for 6 months and will then be destroyed. Further information on how the Council manages your personal information and your rights in relation to this can be found in the Council Privacy Statement.