Non-domestic (business) rates roadmap

Timeline detailing changes to the business rates system.


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

15 March

  • valuation roll is made up

20 February

  • pre-agreement period closes

2025

30 November

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 in 2025-26 of 100% relief for hospitality properties located on islands, and specified remote areas, capped at £110,000 per business and extended to grassroots music venues with a capacity of up to 1,500
  • provision of a 40% relief for hospitality properties (excluding those eligible for the islands and specified remote areas hospitality relief) with rateable values up to and including £51,000, including grassroots music venues with a capacity of up to 1,500, 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

May

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
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