Non-domestic (business) rates roadmap

Key dates each year

• December/January: 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.

1 April

• revaluation based on rents one year before (on the ‘tone date’)
• new valuation roll published: Scottish Assessors Association website
• changes to reliefs: 
  • General Revaluation Transitional Relief (2026-27 to 2028-29)
  • Small Business Transitional Relief for properties losing or seeing reduction in Small Business Bonus Scheme, Rural Rates relief, hospitality relief or 2023 Small Business Transitional Relief on 1 April 2026 (2026-27 to 2028-29)
  • 15% relief for properties in retail, hospitality and leisure sectors liable for the Basic or Intermediate Property Rate (those with a rateable value up to and including £100,000), capped at £110,000 per business per year; plus additional 25% relief for licensed hospitality premises and music venues, including pubs, restaurants, hotels, night clubs and licensed clubs, with a rateable value of £100,000 or less – total relief capped at £110,000 per business per year (2026-27 to 2028-29)
  • extension and expansion of 100% relief to properties in retail, hospitality and leisure sectors located on islands as defined by the Islands (Scotland) Act 2018, and in three prescribed remote areas (Cape Wrath, Knoydart and Scoraig), capped at £110,000 per business per year (2026-27 to 2028-29)
  • introduction of 100% relief for eligible Electric Vehicle-charging points for 10 years (2026-27 to 2035-36)
  • shootings and deer forests ineligible for Small Business Bonus Scheme relief (with exceptions)
  • premises requiring a short-term let licence to operate ineligible for relief if they have not obtained one

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
• introduction of powers for councils to tackle anti-avoidance practices under the Non-Domestic Rates (Miscellaneous Anti-Avoidance Measures) (Scotland) Regulations 2023

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 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