Non-domestic rates (business rates)

Non-domestic rates, also called business rates, are taxes paid on non-domestic properties to help pay for local council services. We are responsible for the policy and legislative framework and set the tax rates, but individual councils administer and collect the tax.

Non-domestic rates are based on the rateable value of a property, which is determined by the independent Scottish Assessors. The amount paid is calculated by multiplying the property's rateable value by a pence in the pound tax rate known as the poundage. Reliefs such as the Small Business Bonus Scheme may reduce this amount.

The Scottish Assessors Association Portal provides the rateable values of all properties and more information on how rateable values are decided.

This Non-domestic (business) rates roadmap details key dates to 2025 for changes to business rates.

Further information and guidance on non-domestic rates can be found in the local government finance circulars.

On mygov.scot we provide:

We publish non-domestic rating accounts every financial year. View the non-domestic rating accounts from 2008 to 2017 in our archive.

We have also published a full list of non-domestic rates legislation.

View additional historic information on non-domestic rates in our archive.

Non-Domestic Rates (Scotland) Bill

The Non-Domestic Rates Bill sets out the legislative framework to enable a number of the Barclay Review recommendations to be implemented. This Scottish Government Bill was introduced by the Cabinet Secretary for Finance, Economy and Fair Work, Derek Mackay MSP, on 25 March 2019. 

The Local Government and Communities Committee has been appointed as the lead committee by the Parliamentary Bureau. Information about the progress of this Bill can be found on the Committee's webpage

The Stage 1 debate on the Bill took place on 10 October 2019, and on the same date the Parliament agreed to the general principles of the Non-Domestic Rates (Scotland) Bill. Stage 1 has now been completed.

The timing of the Stage 2 sessions is a matter for the parliamentary authorities and further information will appear here in due course. 

The Barclay review: background

In 2016 we asked Ken Barclay to lead an external review of non-domestic rates, with a view to reforming Scotland's business rates system to better support growth and long-term investment and reflect changing marketplaces.

The non-domestic tax rates review: Barclay report was published in August 2017, which was followed by the Cabinet Secretary for Finance and the Constitution's Barclay review of non-domestic tax rates: ministerial response.

We published our Barclay review of non-domestic rates: implementation plan in December 2017.

In summer 2018 we ran a consultation on implementing the Barclay recommendations. An independent analysis is available at: Non-domestic rates reform: analysis of responses to consultation on Barclay implementation

The final report from the Barclay Implementation Advisory Group was published in 2019.

Small Business Bonus Scheme (SBBS) review 

The Barclay Review recommended that the effectiveness of SBBS be evaluated. We accepted this recommendation and commissioned the Fraser of Allander Institute (FAI) in June 2019 to carry out an independent review of the scheme. 

The overall aim of the review is to evaluate what the impact of SBBS has been and whether it can be better targeted to support local investment, employment and growth. It’s key objectives are:

  • to understand who is getting the relief
  • to assess the impact of the scheme on relief recipients and identify wider benefits and costs
  • to consider whether the current scheme could be improved 

The FAI is set to report in 2020.

Revaluation 2017

In 2017 all rateable properties were revalued and the updated rateable values were published on the Scottish Assessors Association (SAA) Portal. Any appeals made against those values will be dealt with through the independent legal system. The next rates revaluation will come into force on 1 April 2022.

Contact

Contact details for all the relevant authorities are listed in non-domestic rates: contacts.