Business Rates

The Scottish Government has proposed a range of business rates measures for 2023/24. These are recommendations from the recent budget announcements. This information will be updated further when relevant legislation has been issued.

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 £100,000k from 2023/24
• Higher property rate is set at 2.6 pence above the poundage rate (52.4 pence) for properties with a rateable value of more than £100k for 2023/24

Revaluation transitional relief (RTR)

A RTR scheme will be introduced from 1 April 2023 to cap increases in business rates’ liabilities due to revaluation. The cap in 2023/24 will be 12.5% for small properties, 25% for medium-sized properties and 37.5% for large properties, rising in subsequent years.

Small business bonus scheme (SBBS)

It is proposed to reform SBBS from 1 April 2023. 100% relief will continue to be available for properties with a rateable value up to £12k instead of the current £15k.

The upper rateable value threshold for individual properties to qualify for SBBS relief will be increased from £18k to £20k. 

The relief will taper from 100% to 25% for properties with rateable values between £12,001 and £15k, and from 25% to 0% for properties with rateable values between £15,001 to £20k. The cumulative rules including the overall rateable value threshold of £35k will remain.

Car parks, car spaces, advertisements and betting shops will be excluded from eligibility for SBBS from 1 April 2023.

Small business transitional relief (SBTR)

A SBTR will be introduced for those losing or seeing a reduction in SBBS relief or rural rates relief (including due to SBBS exclusions) on 1 April 2023, to ensure that properties that lose SBBS relief eligibility do so in a phased manner. The maximum increase in the rates liability relative to 31 March 2023 will be capped at £600 in 2023/24, rising to £1,200 in 2024/25 and £1,800 in 2025/26.

Business growth accelerator (BGA)

Properties in receipt of BGA 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.

Prescribed plant machinery

Prescribed plant and machinery used for onsite renewable energy generation and storage will be exempt from rating from 1 April 2023 until 31 March 2025.

Fresh start relief (FSR)

Properties in receipt of FSR 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 FSR will increase from £95k to £100k.

Reverse vending machines (RVM)

The relief available for RVM will end on 31 March 2023.

Enterprise areas

Enterprise area relief will be extended by one year to 31 March 2024.

Calculation of tapered SBBS, SBTR and RTR

Due to The Scottish Government’s late announcement of the changes above, we are currently unable to calculate and apply tapered SBBS, SBTR or RTR. Once we have the required software changes in place, businesses that have applied for tapered SBBS or SBTR, or are eligible for RTR, will receive a revised 2023/24 bill.