Decapitalisation Rate for the 2026 Revaluation: business regulatory impact assessment

Section 5: Next steps and implementation

Recommendations/preferred options

The Scottish Government will continue to prescribe two decapitalisation rates to be used for the contractor’s basis method of valuation at the 2026 revaluation, and the current groupings of properties in each rate will be maintained.

The decapitalisation rates will remain at 4.6% (standard rate) and 2.9% (lower rate).

Implementation considerations/plan

The Scottish Government will communicate its decision on decapitalisation rates via the Scottish Rating Surveyors Forum, the Scottish Ratepayers’ Forum and the Scottish Government Economy bulletin, as well as publishing a Local Government Finance Circular on the government’s website.

Assessors apply decapitalisation rates when applying the Contractor’s method of valuation and will apply these rates from the stage of draft valuation for the 2026 revaluation onwards.

Post-implementation review

The policy around decapitalisation rates is considered at each revaluation. Revaluations take place every three years.

Declaration

I have read the Business and Regulatory Impact Assessment and I am satisfied that it represents a fair and reasonable view of the expected costs, benefits and impact of the policy, and that these have been taken into account when making the policy decision. I am satisfied that business impact has been assessed with the support of businesses in Scotland.

Signed:

Date: 6 May 2025

Minister's name: Ivan McKee

Minister's title: Minister for Public Finance

Scottish Government Contact point: Anouk Berthier