Non-domestic rates (business rates) (2024)

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.

What you need to pay: non-domestic rates

What you need to pay is based on:

1. The value of your property (rateable value) - set by independent assessors - multiplied by

2. A national poundage, a rate that is the ‘pence per £1 of rateable value’ to be paid - set annually by the Scottish Government, minus

3. Any rates relief (discounts) your property is in receipt of – forexample because it is used for charitable purposes or is in a rural area

You canfind out the rateable value for any rated non-domestic propertyat the Scottish Assessors website.

Use thenon-domestic rates calculatoron the mygov.scot website to estimate your rates bill. You can also find out about any relief (discounts) your property may be eligible for.

How the process works

We announce any planned changes to rates and reliefs (discounts) as part of the yearly Scottish Budget which is published in November/December. These must be approved by the Scottish Parliament. Changes then take effect from 1 April.

Non-domestic rates: 2024 to 2025

We have announced a number of non-domestic rates measures for 2024-25 including:

• freezing the Basic Property Rate, or poundage, at 49.8p
• delivering inflationary increases to the Intermediate and Higher Property Rates, at 54.5p and 55.9p respectively
• introducing a 100% relief, capped at £110,000 per ratepayer, for hospitality properties on islands as defined by the Islands (Scotland) Act 2018

Read more about non-domestic rates measures for 2024 to 2025 in theScottish Budget 2024 to 2025.

Improving the wider non-domestic rates system

We have made improvements to the non-domestic rates system following anindependent review of non-domestic rates(the Barclay Review). These changes are designed to help support business growth and include:

• more frequent assessments of the rateable value of properties (revaluations) – every three years instead of five – to better reflect changes in the property market
• improvements to the appeals system to help make it quicker and easier to solve disputes
• administrative changes to improve ratepayer experience such as standardised bills across local councils

See atimeline of all non-domestic rates reforms and key dates.

Further information and guidance on non-domestic rates can also be found inlocal government finance circulars.

Deadline survey

A survey on transferred non-domestic rates appeals was carried out in 2023.

Bills and legislation

See a list ofnon-domestic rates legislation.

Non-domestic rates statistics

We publishinformation relating to non-domestic rates on revaluation appeals, and on reliefs awarded to non-domestic ratepayers, including the Small Business Bonus Scheme.

Archive

Accessolder versions of non-domestic rates contentas well as background information on the Barclay Review at the gov.scot archive.

Contact

Email: NDR@gov.scot