Guide · Tax · Scotland
Non-Domestic Rates Scotland Guide 2026/27 -- Scotland's Business Rates System Explained
Non-Domestic Rates are Scotland's version of business rates -- a property tax charged on shops, offices, factories and other commercial premises, set independently from the rest of the UK with its own poundage, higher-value supplements and reliefs.
Key facts
- Set by: The Scottish Government (poundage), billed by local councils
- Based on: Rateable value x poundage, plus supplements for higher-value properties
- Higher-value supplements: Intermediate and Higher Property Rate
- Main small-business relief: Small Business Bonus Scheme
- Valuation set by: Independent Scottish Assessors, reset at each revaluation
- Current poundage and thresholds: Check revenue.scot or your local council
How Non-Domestic Rates are calculated
Your annual rates bill starts from your property's rateable value -- an estimate of the annual open-market rent it could achieve, set by an independent Scottish Assessor, not by the council or Scottish Government. This is multiplied by the poundage, the basic rate in the pound set each year by the Scottish Government, to give the starting rates bill before any reliefs are applied.
Higher-value property supplements
Properties with a rateable value above set thresholds pay a higher effective rate than the basic poundage. Scotland structures this as an Intermediate Property Rate for a middle band of higher-value properties, and a Higher Property Rate (often referred to as the large business supplement) for the highest-value properties. These supplements mean larger commercial premises contribute proportionally more, and they also generally fall outside the scope of the Small Business Bonus Scheme relief available to lower-value properties.
The Small Business Bonus Scheme
The Small Business Bonus Scheme is the main relief available to smaller commercial premises, reducing -- and for many properties below a lower threshold, eliminating -- the rates bill entirely. A tapered reduction applies to properties in a middle rateable-value band. Because thresholds and percentage reductions are reviewed and can change at each Scottish Budget, and the relief is usually claimed through your local council rather than applied completely automatically, it is worth confirming your eligibility and application status directly with your council.
Other reliefs
- Empty Property Relief -- reduced or nil rates for vacant premises, for a limited period or at a reduced percentage depending on the property type.
- Charitable Rate Relief -- mandatory relief for charities and some registered sports clubs using the property for charitable purposes.
- Rural Rate Relief -- relief for certain business types (such as the only shop or pub in a small settlement) in designated rural areas.
- Various time-limited sector reliefs introduced from time to time, for example around hospitality, retail or renewable energy premises.
Revaluations and appealing your rateable value
Rateable values are reset periodically at a general revaluation, reflecting rental values as at a set valuation date -- this can significantly change individual bills even where the poundage itself moves only slightly. If you think your rateable value is wrong, you can challenge it with the local Scottish Assessors' office responsible for your area (a body independent of both the council and Scottish Government), subject to the applicable time limits, which are often tighter around a revaluation.
How it differs from business rates in England
While the basic mechanism -- rateable value multiplied by a rate in the pound -- is shared across Great Britain, Scotland sets its own poundage, its own higher-value supplement thresholds, its own revaluation cycle, and its own reliefs, including the Small Business Bonus Scheme, which is structured differently from the Small Business Rate Relief scheme used in England. Always check figures specifically for Scotland rather than assuming an England-based rate or threshold applies.