Non-domestic (business) rates roadmap

Key dates each year

• December: Scottish budget proposes any changes to non-domestic rates.
• January/February: laying of annual subordinate non-domestic rates legislation and budget bill phase in Scottish Parliament
• 1 April: annual change in tax rates (poundage)

Timeline

2026

31 July

• deadline to submit a proposal if a valuation (at revaluation) is considered to be wrong (note: views on this date have been surveyed and the Scottish Government will respond in due course). 

1 April

• revaluation based on rents one year before (on the ‘tone date’).
• new valuation roll published: Scottish Assessors Association website.

15 March

• valuation roll is made up

20 February

• pre-agreement period closes

2025

30 November

• publication of draft valuation roll for 2026 revaluation: Scottish Assessors Association website

1 April

• tone date for 2026 revaluation
• pre-agreement period opens when ratepayers can seek to pre-agree the rateable value in advance of the 2026 revaluation (discussions may commence earlier if all required information is available)
• Councils to be able to retain from this date 50% of non-domestic rates revenue raised from the use of powers to tackle anti-avoidance practices under the Non-Domestic Rates (Miscellaneous Anti-Avoidance Measures) (Scotland) Regulations 2023

• Changes to reliefs:

  • continuation for 2025 to 2026 of 100% relief for hospitality properties (extended to grassroots music venues with a capacity of up to 1,500) located on islands, and specified remote areas, capped at £110,000 per business
  • provision for 2025 to 2026 of a 40% relief for hospitality properties (including grassroots music venues with a capacity of up to 1,500) (excluding those eligible for the islands and specified remote areas hospitality relief) with rateable values up to and including £51,000, capped at £110,000 per business

31 March

• deadline for applications for Retail, Hospitality, and Leisure Relief that was available from 1 April 2020 to 30 June 2022.

2024

31 December

• deadline for Local Taxation Chamber, First-tier tribunal to dispose of non-domestic rates appeals lodged up to and including 31 March 2023

1 April

Changes to reliefs:

• introduction of a one-year 100% relief for hospitality properties located on islands (as defined by the Islands (Scotland) Act 2018), capped at £110,000 per ratepayer.
• extension of:
  • 90% renewables District Heating relief until 31 March 2027 and expansion to include all district heating networks where at least 80% of the thermal energy generated derives from renewables.
  • extension of telecommunications mobile masts relief to 31 March 2031.
• phasing out of Enterprise Areas relief over 2024-25 and 2025-26 (which was due to expire on 31 March 2024).

For Self-catering Premises:

• unit of measurement for the letting requirement changed to nights.
• introduction of a deadline for responding to requests from Assessors for evidence of letting.

2023

June

• publication of the New Deal for Business Group Report on progress and recommendations

May

• New Deal for Business Non-Domestic Rates sub-group established

1 April

• revaluation (first three yearly revaluation and first time the tone date is one year only)
• commercial/charitable activity in public parks becomes rateable.  
• Transfer of Valuation Appeal Committees to Local Taxation Chamber, First-tier Tribunal.
• introduction of a two-stage appeals system.

Changes to rate structure:

• rateable value threshold at which Higher Property Rate applies increased from £95,000 to £100,000.

Changes to reliefs:

• devolution of Empty Property Relief to local authorities.
• reform of Small Business Bonus Scheme relief including:
  • reduction from £15,000 to £12,000 of rateable value threshold for 100% relief where the ratepayer has a single entry in the roll;
  • introduction of a taper from 100% to 0 for properties with a rateable value from £12,000 to £20,000.
  • Exclusion of betting shops, carparks and advertising from eligibility
• introduction of General Revaluation Transitional Relief for 2023-24 to 2025-26.
• introduction of a Small Business Transitional Relief for properties losing or seeing a reduction in Small Business Bonus Scheme or losing eligibility for Rural Rates relief at revaluation for 2023-24 to 2025-26.
• introduction of a Park Transitional Relief for 2023-24 to 2025-26.
• introduction of a rating exemption for prescribed plant and machinery used in onsite renewable energy generation and storage until 31 31 March 2035.
• expansion of Fresh Start Relief: rateable value threshold increased from £95,000 to £100,000.
• extension of Enterprise Areas relief for one year to 31 March 2024.
• removal of any expiry date on Day Nursery Relief (previously 30 June 2023)
• replacement of 100% Reverse Vending Machine relief by a rating exemption for sites of Reverse Vending Machines

2022

1 April

• tone date for 2023 revaluation.
• introduction of requirement for self-catering premises to be actually let for 70 days in a financial year in addition to being available to let for 140 days in order to be classed as non-domestic and entered on the valuation roll.

Changes to reliefs:

• introduction of 50% relief for properties in the Retail, Hospitality and Leisure sectors from 1 April to 30 June 2022, capped at £27,500 per ratepayer.
• increases in rateable values due to the installation of solar panels become eligible Business Growth Accelerator relief.
• extension of Enterprise Areas relief for one year to 31 March 2023.
• removal of eligibility for charitable rates relief from mainstream independent schools.

2021

31 December

• disposal deadline for 2017 revaluation appeals.

1 April

Changes to reliefs:

• extension of 100% relief for Retail, Hospitality, Leisure and Aviation sectors for one year to 31 March 2021.
• improvements with changes to the use of the property become eligible for Business Growth Accelerator relief.
• duration of Business Growth Accelerator Relief for a given new-build property restricted to the later of four years or one year after first occupation
• expansion of Fresh Start Relief: rateable value threshold increased from £65,000 to £95,000.
• introduction of a new 90% District Heating Relief for district heating networks powered by renewable energy sources to 31 March 2024
• extension of Day Nursery relief to 30 June 2023

60% Hydro Relief confirmed to be available until 31 March 2032 following publication of Tretton Review Report of Small-Scale Hydro Plant and Machinery

Measures under the Non-Domestic Rates (Scotland) Act 2020:

• civil penalties introduced for failure to comply with local authority information notices.
• assessors must include a mark in the valuation roll for new and improved properties to help councils identify if a property is eligible for Business Growth Accelerator relief.
• councils can refuse or withdraw relief to non-used/underused properties
• statutory guidance published in respect of discretionary sports club relief (for organisations that are not for profit, but are not Community Amateur Sports Clubs)

2020

27 May

• introduction of a 100% COVID-19 relief for news publishing to 31 March 2021 

1 April

Changes to rate structure:

• introduction of an Intermediate Property Rate (for properties with rateable values between £51,001 and £95,000) and a Higher Property Rate (for properties with rateable values over £95,000), superseding the previous Large Business Supplement on properties with a rateable value over £51,000

Changes to reliefs:

• introduction of 100% relief for Reverse Vending Machines
• introduction of one-year COVID-19 reliefs:
  • 1.6% relief for all non-domestic properties; and
  • 100% relief for Retail, Hospitality, Leisure and Airport properties
• enterprise Areas relief extended by one year to 31 March 2022.
• District Heating Relief confirmed to be available until 31 March 2032
• Small Business Bonus Scheme relief restricted to properties in active use

12 March:

• civil penalties introduced for failure to respond to Assessors information notices

2019

1 April

Changes to reliefs:

• introduction of a 10-year 100% fibre broadband relief

22 February

Publication of Non-domestic rates reform: analysis of responses to consultation on Barclay implementation

31 January

Government commits to devolving Empty Property Relief to councils in time for the next revaluation in a deal agreed between the Scottish Government and the Green Party

2018

1 April

Changes to reliefs:

• expansion of Fresh Start relief to include all property types
• introduction of:
  • Business Growth Accelerator relief
  • 100% Day Nursery Relief to 31 March 2021
  • 60% Hydro relief

2017

December

Scottish Government responds to the Barclay Review Report in its Implementation Plan

August

Publication of the Barclay Review Report on Non-Domestic Rates

1 April

• revaluation based on rents two years before

Changes to reliefs:

• expansion of Small Business Bonus Scheme
• introduction of transitional relief for the 2017 revaluation
• introduction of a 50% District Heating Relief