Changes happening in Business Rates
Business Rates 2023-24
The Scottish Government has proposed a range of Business Rates measures for 2023-24. These updates relate to legislation laid 9th February 2023.
Software Changes
Due to the significant and complex relief schemes introduced for 2023-24, there will be a delay providing sufficient software allowing the correct reliefs to be applied.
Not all ratepayers will be affected as most will receive accurate bills.
We can accept repayment arrangements if necessary.
Subsequent bills with the correct relief should be issued in late May/early June.
Revaluation
The most recent revaluation in Scotland was 1 April 2023. Rateable Values are reviewed to reflect changes in the property market. Enquiries relating to your property’s rateable value should be raised with your local Assessor. www.saa.gov.uk
Revaluation Transitional Relief (RTR)
An RTR will be introduced to cap increases in rates liability due to the revaluation. This means those properties which have increased by more than the Scottish average will have their bills capped. The table below details the limitation to the increased rates bills for 2023/24.
| Rateable Value (per property) | 2023 to 2024 |
| Up to £20,000 | 12.5% |
| £20,001 to £100,000 | 25% |
| Over £100,000 | 37.5% |
Poundage Rate
The Poundage Rate will be frozen for 2023-24 at 49.8 pence. An Intermediate Property Rate and Higher Property Rate are as follows:
- Intermediate Property Rate is set at 1.3 pence above the Poundage Rate (51.1 pence) for properties with a Rateable Value between £51,001 and £100,000.
- Higher Property Rate is set at 2.6 pence above the Poundage Rate (52.4 pence) for properties with a Rateable Value of £100,001 and more.
Small Business Bonus Scheme (SBBS)
This scheme has been reformed from 1 April 2023. 100% relief will continue to be available for properties with a rateable value up to £12,000 instead of the current £15,000.
The upper rateable value threshold for individual properties to qualify for SBBS relief will be increased from £18,000 to £20,000.
The SBBS benefits
For ratepayers with only one non-domestic property with a rateable value:
- up to £12,000 - 100% relief (no rates payable)
- from £12,001 to £15,000 - scales from 100% to 25% relief
- from £15,001 to £20,000 – scales from 25% to 0% relief
For ratepayers with more than one property and where the total (cumulative) rateable value of all your non-domestic properties is £12,000 or less, the relief is 100% (no rates payable).
For ratepayers with more than one property and where the total rateable value of all your non-domestic properties is between £12,001 and £35,000, then relief:
- is 25% on each individual property with a rateable value of £15,000 or less
- scales from 25% to 0% for individual properties with rateable values from £15,001 to £20,000
The Small Business Bonus Scheme is not available to advertisements, car parks, betting shops and payday lending businesses.
Small Business Transitional Relief
A Small Business Transitional Relief will be introduced for those losing or seeing a reduction in Small Business Bonus Scheme relief on 1 April 2023. The maximum increase in the rates liability relative to 31 March 2023 will be capped at £600.
| 2023/24 | 2024/25 | 2025/26 |
| £600 | £1,200 | £1,800 |
Empty Property Relief
Empty Property Relief has been devolved to local authorities on 1 April 2023. The existing reliefs will remain in place for 2023/24 with reviews taking place to ensure the correct relief is being applied.
Business Growth Accelerator
Properties in receipt of Business Growth Accelerator Relief (also known as New and Improved Relief) on 31 March 2023 will continue to be eligible for an equivalent percentage of relief on the new rateable value for the remaining duration of the relief.
Fresh Start Relief
Properties in receipt of Fresh Start Relief on 31 March 2023 will continue to receive relief for the remaining duration of the relief, regardless of whether the new rateable value is above the qualifying threshold. From 1 April 2023, the rateable value up to which properties qualify for Fresh Start Relief will increase from £95,000 to £100,000.
Retail Hospitality & Leisure Relief (RHL)
There is no further RHL Relief for Scotland
Day Nursery Relief
Will continue indefinitely