Rate relief to be removed for vape shops
Review of non-domestic rates revaluation announced.
Vape shops are set to lose discounts from their bills as part of a commitment to reform the non-domestic rates system.
In a statement to the Scottish Parliament, Deputy First Minister Jenny Gilruth announced plans to remove rate relief for vape shops from 1 April 2027.
The Scottish Government will also appoint an independent panel to examine the outcome of the 2026 non-domestic property revaluation following reports of inconsistent valuations.
The panel will assess whether there are any anomalies that exist within the revaluation and report within three months of being appointed.
The Deputy First Minister said:
“The Scottish Government is absolutely determined to drive economic growth, and enable businesses to invest, grow, and create jobs. A key part of making that economic growth a reality will be getting the framework right on Non-Domestic Rates.
“Ministers have heard the concerns raised by businesses and trade bodies about apparent anomalies within the 2026 revaluation, and that is why we are taking urgent action.
“This includes taking action to ensure vape shops are contributing to the high street, recognising the growth of the sector in recent years and ensuring rates relief aligns with our public health commitments.
“We will also examine comprehensive improvements and reforms that can be made to the non-domestic rates system, seeking independent advice and working closely with business. This will ensure that the system works overall – and provides the clarity, the confidence, the incentive and the transparency businesses need.”
Background
Non-domestic rates (NDR), or business rates, are a property tax charged on the occupiers of non-domestic properties in Scotland.
They are calculated by taking a property’s rateable value (based broadly on its rental value) and multiplying it by a nationally set tax rate (“poundage”), with councils applying any relevant reliefs and collecting the final bill.
Payday lending, car parks, betting shops, properties requiring a short-term let licence to operate but which have not obtained one, and shootings (with exceptions) are already excluded from eligibility for non-domestic rates Small Business Bonus Scheme relief and Fresh Start relief.
Arrangements will be made shortly for appointments to the panel. The outcome of the review will be presented to Parliament.