Non-domestic rates (business rates)
Non-domestic rates, also called business rates, are a property tax which helps pay for local council services.
The Scottish Government sets non-domestic rates. Councils administer and collect rates.
What you need to pay: non-domestic rates
What you need to pay is based on:
- the value of your property (rateable value) - set by independent assessors - multiplied by
- a national poundage, a rate that is the ‘pence per £1 of rateable value’ to be paid - set annually by the Scottish Government, minus
- any rates relief (discounts) your property is in receipt of – for example because it is used for charitable purposes or is in a rural area
You can find out the rateable value for any rated non-domestic property at the Scottish Assessors website.
Use our non-domestic rates calculator to estimate your non-domestic rates bill. You can also find out about any relief (discounts) your property may be eligible for.
How the process works
We announce any planned changes to rates and reliefs as part of the yearly Scottish Budget which is published in November or December. These are passed by the Scottish Parliament. Changes then take effect from 1 April.
Non-domestic rates: 2024 to 2025
We have announced a number of non-domestic rates measures for 2024-25 including:
- freezing the Basic Property Rate at 49.8p
- delivering inflationary increases to the Intermediate and Higher Property Rates, at 54.5p and 55.9p respectively
- introducing a 100% relief, capped at £110,000 per ratepayer, for hospitality properties on islands and specified remote areas
Read more about non-domestic rates measures for 2024 to 2025 in the Scottish Budget 2024 to 2025.
Non-domestic rates: 2025 to 2026
We have announced a number of non-domestic rates measures for 2025 to 2026 including:
- freezing the Basic Property Rate at 49.8p
- delivering inflationary increases to the Intermediate and Higher Property Rates, at 55.4p and 56.8p respectively
- maintaining a 100% relief, capped at £110,000 per business, for hospitality properties (including grassroots music venues with a capacity of 1,500) on islands and specified remote areas (Cape Wrath, Knoydart, and Scoraig)
- providing a 40% relief, capped at £110,000 per business, for hospitality premises (excluding those eligible for the islands and specified remote areas hospitality relief) with rateable values up to and including £51,000, including grassroots music venues with a capacity of 1500
Read more about non-domestic rates measures for 2025 to 2026 in the Scottish Budget 2025 to 2026.
Improving the wider non-domestic rates system
We made improvements to the non-domestic rates system following the independent Barclay Review. These changes are designed to help support business growth and include:
- more frequent assessments of the rateable value of properties (revaluations) – every three years instead of five – to better reflect changes in the property market
- improvements to the appeals system to help make it quicker and easier to solve disputes
- administrative changes to improve ratepayer experience such as standardised bills across local councils
See a roadmap of non-domestic rates reforms and key dates.
Further information and guidance on non-domestic rates can also be found in local government finance circulars.
Consultations and surveys
- Transferred non-domestic rates appeals survey – September 2023.
- Council tax on second and empty homes and non-domestic rates thresholds – April 2023
- Non-domestic rates: decapitalisation rates for the 2023 revaluation – December 2021
- Reforming the non-domestic rates system: proposals, the draft valuation roll, content of valuation notices, etc. – September 2021
- Local taxation - Valuation Appeals Committees etc: transfer of functions – September 2021
- Non-domestic rates reform: Barclay Implementation – June 2018
- Non-domestic rating revaluation: Consultation on possible transitional arrangements – August 2016
- Consultation on the setting of Decapitalisation Rates for 2017 revaluation – August 2015
Stakeholder groups
- New Deal for Business Non-Domestic Rates Sub-Group – May 2023
- Small Business Bonus Scheme Evaluation Short-Term Working Group – June 2022
- Barclay Review Implementation Advisory Group – January 2018
- Barclay Review Implementation Advisory Group Appeals Sub-Group – March 2018
- Barclay Review Implementation Advisory Group Billing Sub-Group – March 2018
Bills and legislation
See a list of non-domestic rates legislation.
Non-domestic rates statistics
We publish information relating to non-domestic rates on revaluation appeals, and on reliefs awarded to non-domestic ratepayers, including the Small Business Bonus Scheme.
Archive
Access older versions of non-domestic rates content as well as background information on the Barclay Review at the gov.scot archive.
Contact
Email: NDR@gov.scot