A guide to business rates in Scotland

The following limits apply to increases in your business rates bill:

This limits how quickly your bill can rise following revaluation.

• A specific scheme applies to licensed self-catering properties, capping increases at 15% year-on-year
• Parks that became newly rateable from April 2023 may qualify for transitional relief of 33%

Following the 2023 revaluation, transitional relief capped increases in liability based on rateable value bands, as shown below.

Transitional relief caps

This supports properties that lose eligibility for certain reliefs following revaluation – such as the Small Business Bonus Scheme – ensuring increases are phased in rather than applied immediately.

For the 2023 revaluation, increases were capped at £600 in 2023/24, £1,200 in 2024/25 and £1,800 in 2025/26. The relief continues in 2026 with some significant changes.

The Small Business Bonus Scheme (SBBS) provides relief for properties with lower rateable values and was reformed from April 2023. It is one of the most widely used reliefs for smaller properties.

• 100% relief is available for properties with a rateable value up to £12,000
• A cumulative threshold of £35,000 applies

From April 2026:

• The structure of the relief remains unchanged
• Certain property types are excluded, including car parks, advertising hoardings, betting shops and payday lenders
• Shootings and deer forests are excluded, with limited exceptions
• Short-term lets must hold a licence to qualify
• Fresh Start Relief is a standalone relief and cannot usually be combined with other reliefs, including SBBS
• Relief is tapered up to £20,000. The structure is shown below.

Relief tapering

A new nationwide relief applies from 2026/27 to 31st March 2029. This includes:

• 15% non-domestic relief for eligible properties with a rateable value up to £100,000
• An additional 25% relief (40% overall) applies to licensed premises and music venues, including pubs, hotels, restaurants and nightclubs with an RV up to £100,000
• Combined relief is capped at £110,000 per business per year

• Effective from 1st April 2024, 100% relief is available for eligible retail, hospitality and leisure properties in designated island and remote areas (Cape Wrath, Knoydart and Scoraig)
• Extended through to March 2029
• Relief is subject to the same £110,000 annual cap

Properties used wholly or mainly for charitable purposes may qualify for relief.

• Up to 80% relief is available for charities and eligible amateur community sports clubs
• Local authorities may award additional discretionary relief of up to 20%
• In some cases, discretionary relief of up to 100% may be available for non-profit organisations

Eligibility depends on how your property is used and whether it meets the relevant criteria.

• New build properties may be exempt from business rates for 12 months and until first occupation
• Where a property is expanded or improved, your bill may continue to be based on the previous RV for 12 months
• The relief also applies to certain changes of use, supporting regeneration and the reuse of existing properties, including installations such as solar panels
• Relief in place before April 2023 may continue on the updated rateable value for the rest of the eligibility period, including into the 2026 Rating List.

100% relief may apply in designated rural areas with a population below 3,000 and is:

• A small food shop, general store, or post office with a rateable value below £8,500
• A small hotel, public house, or petrol station with an RV up to £12,750
• Other businesses providing a benefit to the community with an RV of up to £17,000

• Relief may be available for properties that are unoccupied, although this is typically time-limited
• From April 2023, administration of empty property relief is set by local authorities, meaning schemes may vary depending on location
• After any exemption period ends, full rates are usually payable

Specific relief is available to support energy generation and infrastructure investment.

• Renewable energy schemes incorporating community ownership may be eligible for relief of up to 100%, where energy generation takes place at the property
• Where multiple renewable properties are held, rateable values may be combined when assessing eligibility

• Small hydro schemes may benefit from capped bill increases of 12.5%
• Hydro schemes with an installed capacity of no more than 1 megawatt may qualify for 25% relief

• Up to 90% relief for properties used wholly or mainly for district heating networks, extended to 31 March 2027, where at least 80% of heat comes from renewable sources

• New build renewable generation properties may qualify for relief where used solely to generate heat or power
• Relief of up to 60% may apply where the rateable value is below £5 million

• Fibre broadband relief available until 31 March 2034
• Mast relief available until 31 March 2031

• Enterprise Area relief may still apply in limited cases, where properties were previously eligible (see below)
• Relief has been phased out, with tapering reductions applied over recent years
• The level of relief depends on the property’s rateable value and the stage of withdrawal

Additional reliefs may apply depending on how your property is used or managed. Local authorities may grant discretionary reliefs, which are fully funded at a local level and may vary depending on location. These include:

• Up to 100% relief for properties used for the care or welfare of disabled people
• 100% relief for day nurseries, made permanent in 2023
• Fresh Start relief for previously empty properties. Existing recipients continue to receive relief for the remainder of the scheme, even if their rateable value exceeds the threshold. This increased to £100,000 from April 2023
• Local discretionary reliefs granted by councils
• 100% relief for eligible electric vehicle charging infrastructure for 10 years from 1st April 2026

Certain properties are exempt entirely, including:

• Agricultural land and buildings including fish farms
• Places of worship
• Public parks and roads
• Certain offshore and infrastructure-related properties

• Properties available for short-term letting for 140 days or more per year are treated as non-domestic and subject to business rates rather than council tax
• Guesthouses or larger bed and breakfasts accommodating more than six people are treated as commercial and may be liable for business rates regardless of availability

• The proposal window for the 2026 valuation list opened on 1st April 2026
• The deadline to submit an appeal is 31st July 2026
• A two-stage process applies, encouraging early resolution and improving access to justice by avoiding the formal process
• Unresolved cases may proceed to tribunal

You are required to respond to requests from Assessors and keep your property information accurate and up to date. This is particularly important during revaluations, where details such as rental, cost or turnover may be requested. Failure to provide this may result in a fine.

Councils can impose civil penalties where requests are not met or where changes are not reported. Failure to respond within 21 days of a request, or within 42 days of a change of occupier, may result in a fine of £370.

Further penalties may apply where required information is not provided. See the table below:

Compliance penalties