Non-domestic rates (business rates)
Non-domestic rates, also called business rates, are a property tax which help 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.
How the process works
We announce any planned changes to rates and reliefs (discounts) as part of the yearly Scottish Budget which is published in November/December. These must be approved by the Scottish Parliament. Changes then take effect from 1 April.
Non-domestic rates: 2023 to 2024
We have announced a number of measures for 1 April 2023 to 31 March 2024 to help businesses and support the economy. These include:
- keeping the Basic Property Rate at 49.8p
- extending eligibility of the Small Business Bonus Scheme
- expanding Fresh Start relief for long-term empty properties, to support town centre regeneration
Read more about non-domestic rates measures for 2023 to 2024 in the Scottish Budget 2023 to 2024.
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, or poundage, 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 as defined by the Islands (Scotland) Act 2018
Read more about non-domestic rates measures for 2024 to 2025 in the Scottish Budget 2024 to 2025.
Improving the wider non-domestic rates system
We have made improvements to the non-domestic rates system following an independent review of non-domestic rates (the 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
Further information and guidance on non-domestic rates can also be found in local government finance circulars.
Bills and legislation
See a list of non-domestic rates legislation.
Non-domestic rates statistics
We publish non-domestic rating accounts every year.
Access older versions of non-domestic rates content as well as background information on the Barclay Review at the gov.scot archive.