The Scottish Government has proposed a range of Non-Domestic Rates measures for 2024-25. See below therecommendations from the recent budget announcements.
View theShort Guide toNon-Domestic Rates and Reliefs
Poundage Rate
The Poundage Rate will be frozen for 2024-25at 49.8 pence. An Intermediate Property Rate and Higher Property Rate are as follows:
- Intermediate Property Rate is set at 4.7penceabove the Poundage Rate (54.5pence) for properties with a Rateable Value between£51,001 and £99,999k from 2024-25
- Higher Property Rate is set at 6.1 penceabove the Poundage Rate (55.9 pence) for properties with a Rateable Value of more than £100kfor 2024-25
Revaluation Transitional Relief (RTR)
ARTR has been introduced to cap increases in rates liability due to the revaluation in 2023. From 2024-25 the RTR will be:
- 25% for properties with a Rateable Value up to £20,000,
- 50% for those with a Rateable Value between £20,001 and £100,000, and
- 75% for those with a Rateable Value over £100,000
Small Business Transitional Relief
A Small Business Transitional Relief was introduced for those losing or seeing a reduction in Small Business Bonus Scheme relief or Rural Rates Relief (including due to SBBS exclusions) from 1 April 2023, to ensure that properties that lose SBBS relief eligibilitydo so in a phased manner.The maximum increase in the rates liability relative to 31 March 2023will be capped at £1,200 rising to £1,800 in 2025-26.
Parks Transitional Relief
A Parks Transitional Relief was introduced in 2023-24. It now provides a 33% relief award for parts of parks that existed but were exempt from valuation for Non-Domestic rating on 31 March 2023, and which became rateable on 1 April 2023. If you were awarded this relief in 2023-24, you don’t need to reapply in 2024-25.
Empty Property Relief
We’ve changed the way we award Empty Property relief on Non-Domestic Rates accounts with effect from 1 April 2024.
Under the Community Empowerment (Scotland) Act 2015 the Council agreed on 25 January 2024 to amend its Empty Property Relief policy with effect from 1 April 2024 to allow relief on an empty land or heritage of 50% for a maximum of 3 months from the date the property first became empty, followed by a 10% relief for a maximum of 9 months, after which no relief is awarded. Lands and heritages which are empty due to sequestration, liquidation or where occupation is prohibited by law can be awarded 100% relief indefinitely. You can view the Empty Property Relief policy or find more information on the options available to help you bring the property back in to use at ww.scotborders.gov.uk/emptypropertyrelief.
Extension of Reliefs
District Heating relief for renewables, which had been due to expire on 31 March 2024, will be extended and expanded. 90% relief will be available until 31 March 2027 for district heating networks where at least 80% of the thermal energy generated derives from renewables. Previously support for renewable district heating was limited to new networks entered on the valuation roll after 1 April 2021.
Telecommunications mobile mast relief will be extended from 31 March 2029 to 31 March 2031.
Existing Non-Domestic Rates Reliefs
All other existing NDR reliefs, including the Small Business Bonus Scheme relief, will be maintained.
FAQs
Revaluation Transitional Relief (RTR)
From 2024-25 the RTR will be: 25% for properties with a Rateable Value up to £20,000, 50% for those with a Rateable Value between £20,001 and £100,000, and. 75% for those with a Rateable Value over £100,000.
What is the difference between business rates and council tax in Scotland? ›
Non-domestic rates are a tax on non-domestic properties to help pay for local council services. These include services like education, social care and waste management. Non-domestic rates are often referred to as 'business rates'. They're charged on non-domestic properties held by the private, public and third sectors.
Do I need to pay business rates in Scotland? ›
Who needs to pay non-domestic rates. Businesses, charities and public sector organisations have to pay non-domestic rates. You pay them if you're the owner, tenant or occupier of a non-domestic property.
Who controls business rates in Scotland? ›
Non-domestic rates, also called business rates, are a property tax which help pay for local council services. The Scottish Government sets non-domestic rates. Councils administer and collect rates.
How are business rates calculated in Scotland? ›
Business rates are calculated by multiplying the Rateable Value (RV) of your property by the National Poundage Rate. Your RV is set by your local Assessor and the Poundage Rate set by the Scottish Government.
What will happen to Scottish tax rates? ›
From Saturday (6 April 2024) a new Advanced income tax band will apply a 45% rate on annual income between £75,000 and £125,140. An additional 1pence will be added to the Top rate of tax meaning income over £125,140 will be taxed at 48%.
Is Council Tax in Scotland cheaper than England? ›
Table 1 shows that Council Tax rates in Scotland are lower than in both England and Wales, however this paper will explain why direct comparisons should be treated with caution[1].
What is the business tax rate in Scotland? ›
The main rate of Corporation Tax is 25% for companies with profits of £250,000 or more – this applies to all profits. A Small Profits Rate of 19% will exist for Companies with profits of £50,000 or less. You must register with HMRC to pay Corporation Tax within three months of starting your business.
Who pays the most Council Tax in the UK? ›
UK council tax bands: The cheapest and most expensive areas
However the most expensive area is in Rutland and Nottingham, in the East Midlands. The 2024/25 council tax rates that came in on 1 April, mean that those living in band D properties in those areas are now paying more than £2,543 a year on average.
How to avoid business rates? ›
How to Avoid Paying Unnecessary Costs with Business Rates Loopholes
- Exempted Buildings & Empty Buildings. There are a number of different types of buildings and empty buildings that do not have to pay business rates. ...
- Industrial Property Solutions. ...
- Charitable Occupation.
In Scottish business culture, it is important to be punctual at work and in social situations. Also, arrive on time if invited to a dinner party. Business cards should be printed in English, the national language. Ensure that you bring a plentiful supply since Scottish businesspeople tend to be keen to exchange them.
What 2 months do you not pay rates in Northern Ireland? ›
Paying your rate bill
Your rate bill is based on rates assessed from 1 April to 31 March. When you receive your domestic rate bill, you're responsible for paying the full amount within the rates year.
Are business rates higher in Scotland? ›
“Shops and other businesses liable for the Higher Property Rate in Scotland continue to pay more than their counterparts in England, to the tune of £63 million annually.
Who pays Scottish tax rates? ›
You'll pay Scottish Income Tax if you live in Scotland. This means your Income Tax will be paid to the Scottish Government. Your Personal Allowance continues to be set by the UK government. You'll also pay the same tax as the rest of the UK on dividends and savings interest.
How do I contact Scottish Borders Council business rates? ›
More information about payments can be found online, or you can call Customer Advice and Support during office hours on 0300 100 1800.
How much tax relief in Scotland? ›
This means that if you pay tax at the Scottish intermediate rate of 21%, you can get an extra 1% tax relief. If you are a non-taxpayer, or only pay income tax at the Scottish starter rate of 19%, you will also get relief at source of 20%.
What is the poundage rate in Scotland? ›
What is the Poundage? The poundage rate for Scotland in 2024-25 is 49.8 pence.
What is the cost of living rebate in Scotland? ›
The Scottish Government have announced support to low-income households to help tackle the cost of living crisis. The Cost of Living Award is for £150 and eligibility for the award is based on whether the person is liable for Council Tax on 14 February 2022.
