Business Rates 2025-26
The Scottish Government has proposed a range of Non-Domestic Rates measures for 2025-26. See below the recommendations from the recent budget announcements.
View the Short Guide to Non-Domestic Rates and Reliefs
Poundage Rate
The Poundage Rate will be frozen for 2025-26 at 49.8 pence. An Intermediate Property Rate and Higher Property Rate are as follows:
- Intermediate Property Rate is set at 5.6 pence above the Poundage Rate (55.4 pence) for properties with a Rateable Value between £51,001 and £99,999k from 2024-25
- Higher Property Rate is set at 7 pence above the Poundage Rate (56.8 pence) for properties with a Rateable Value of more than £100k for 2024-25
Revaluation Transitional Relief (RTR)
A RTR has been introduced from 1 April 2023 to cap increases in rates liability due to the revaluation.
The cap in 2025/26 will be 37.5% for small properties, 75% for medium-sized properties and 112.5% for large properties.
| Rateable Value (RV) | 2023/24 | 2024/25 | 2025/26 |
|---|---|---|---|
| Small - RV up to £20k |
12.5% |
25% |
37.5% |
| Medium – RV between £20,001 and £100k |
25% |
50% | 75% |
| Large – RV over £100k | 37.5% | 75% | 112.5% |
Find out more on our Transitional Relief webpage.
Small Business Transitional Relief
A Small Business Transitional Relief was introduced for those losing or seeing a reduction in Small Business Bonus Scheme relief or Rural Rates Relief (including due to SBBS exclusions) from 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 £1,200 rising to £1,800 in 2025-26.
Hospitality Relief
The Scottish Government introduced a new 40% relief in 2025/26 for hospitality businesses that have a rateable value up to and including £51,000. The defined hospitality property class types are:
- Bed and breakfast accommodation
- Camping site
- Caravan
- Caravan site
- Chalet, holiday hut and bothy
- Guest house, hotel and hostel
- Public house
- Restaurant
- Self-catering holiday accommodation
- Small music venue
- Timeshare accommodation
Find out more on our Hospitality Relief webpage.
Empty Property Relief
From 1 April 2024, we changed the way we award Empty Property relief on Non-Domestic Rates accounts with effect.
With effect from 1 April 2024, relief of 50% canbe awarded for a maximum of 3 months from the date the property first became empty, followed by a 10% relief for a maximum of 9 months, after which no relief is awarded. Lands and heritages which are empty due to sequestration, liquidation or where occupation is prohibited by law can be awarded 100% relief indefinitely. You can view the Empty Property Relief policy or find more information on the options available to help you bring the property back in to use on our Empty Propety Relief webpage.
Existing Non-Domestic Rates Reliefs
All other existing NDR reliefs, including the Small Business Bonus Scheme relief, will be maintained.