Local government

Non-domestic rates (business rates)

Upcoming reforms to the non-domestic rates system are set out in this letter.

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 for changes to business rates.

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

On 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 list of non-domestic rates legislation.

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

Scottish Budget 2023 to 2024: non-domestic rates measures

The Scottish Budget 2023-2024, published in December 2022, contains a number of measures relating to non-domestic rates. These will ensure that Scotland maintains a generous non-domestic rate regime in the UK.

The Scottish Budget 2023-2023:

  • delivers a freeze in the poundage at 49.8p
  • ensures over 95 per cent of properties in Scotland are subject to a lower poundage than they would face in other parts of the UK for the fifth year in a row
  • maintains a package of reliefs worth a forecasted £744 million
  • reforms the Small Business Bonus Scheme, ensuring that it remains the most generous scheme of its kind in the UK whilst making the relief more progressive
  • delivers a Transitional Relief, acknowledging the impact of the revaluation and protecting those seeing the most significant increases in their rateable values.
  • introduces a Small Business Transitional Relief to ensure that properties losing or seeing a reduction in Small Business Bonus Scheme or Rural rates relief at revaluation do so in a phased manner.
  • delivers an exemption from rating for prescribed plant and machinery used in onsite renewable energy generation and storage until 31 March 2035
  • maintains the Business Growth Accelerator and Fresh Start Reliefs, and expands Fresh Start by increasing the upper rateable value threshold from £95,000 to £100,000
  • extends Enterprise Areas relief by one year to 31 March 2024

Non-Domestic Rates (Scotland) Act 2020

The Non-Domestic Rates Act 2020 sets out the legislative framework to enable a number of the Barclay Review recommendations to be implemented. The Act was introduced on 25 March 2019. 

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

The Bill was passed by Parliament on 5 February 2020 and received Royal Assent on 11 March 2020.

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 as was the final report of the Barclay Implementation Advisory Appeal sub-Group.

Small Business Bonus Scheme (SBBS) review 

The Barclay Review recommended that the effectiveness of SBBS be evaluated. It set out that the Review should be concluded, and recommendations addressed and implemented by the next revaluation. The Scottish Government 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 

Read the FAI’s final report of the SBBS evaluation


On 1 April 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 are dealt with through the independent legal system. 

The next non-domestic rates revaluation in Scotland will take effect on 1 April 2023, based on rental values pertaining as at 1 April 2022. This will mean that properties’ rateable values will better reflect true market conditions than in previous revaluations which had a two-year tone date.


From 30 November 2022, draft valuations for the 2023 revaluation can be accessed on the Scottish Assessors Association website. Owners and occupiers of rateable non-domestic properties will receive a draft valuation notice. Draft values may change up to 1 April 2023, following which owners and occupiers will receive a final valuation notice.  

You can find out more information about revaluation on  

Non-Domestic Rates (Coronavirus) (Scotland) Act 2022 

The Non-Domestic Rates (Coronavirus) (Scotland) Act 2022 sets out a rule for the determination of the net annual value (NAV) and the rateable value (RV) of non-domestic properties. It seeks to ensure that in calculating the NAV or RV of any properties in the 2017 valuation roll for non-domestic rates, no account can be taken of any matter arising on or after 2 April 2020 that is directly or indirectly attributable to coronavirus, expanding the policy put in place by The Valuation and Rating (Coronavirus) (Scotland) Order 2021 (S.S.I. 2021/445) which came into force on 1 December 2021. The Bill was passed by Parliament on 21 June 2022 and received Royal Assent on 28 July 2022.

Further information on the Bill may be found on the Scottish Parliament’s website


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

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