Business Rates

Revaluation 2026
Non-Domestic Rates (Business Rates) are a tax on property based on the annual value of a property at a specific valuation date. For the 2026 Revaluation the valuation date is 1^st April 2025.

The Rateable Value is multiplied by a rates poundage (set annually by the Scottish Government) to produce the annual rates liability for each individual property.

Rates relief may be available, dependent upon specific criteria being met. Rates relief can be a complex and confusing subject, which Shepherd have the expertise to navigate.

In Scotland Rateable Values are assessed by one of 14 local Assessors, each of whom covers a defined valuation area.

Rateable Values are subject to revaluation at three yearly intervals. All non-domestic properties in Scotland will be re-assessed with effect from 1^st April 2026.

Our Brief Guide to Revaluation 2026 is available here.

A Rateable Value set at a Revaluation can be challenged within a strictly prescribed time period. For the 2026 Revaluation a challenge (known as a Proposal) must be submitted by no later than 31^st July 2026.

Our expert rating team have decades of experience in challenging Rateable Values and a proven track record in minimizing our clients rates liability. We recognise that no two cases are exactly the same and will tailor our advice and service to suit individual circumstances.

We strive to ensure that your rates liability is kept to an absolute minimum.

For the 2026 Revaluation our advice is this…take professional advice, act early, do not wait until it’s too late. Contact our rates team today!

Business Rates Glossary

The Assessor
There are 14 Assessors who between them cover the whole of Scotland. It is the Assessor’s duty to prepare and maintain an accurate Valuation Roll, including the preparation of a new Valuation Roll at three yearly intervals and the maintaining of the valuation roll between Revaluations.

Valuation Roll
The valuation roll is produced and maintained by the Assessor. It sets out the Rateable Values of all non-domestic properties in the country and in some cases provides a summary of their valuation calculations. The valuation roll is a public document which is available to view online at www.saa.gov.uk

Rateable Value (RV)
A Rateable Value notionally reflects the annual rental value at a given valuation date. Different types of property are assessed in different ways. Most Rateable Values are assessed based on the location, size and physical characteristics of the property. However some (eg public houses, hotels etc) are assessed based on their hypothetical achievable turnover and some (schools, hospitals etc) are assessed based on a contractor’s (ie cost) basis.

Proposals
In Scotland the submitting of a Proposal is the first stage of a two stage appeal process. A Proposal is a detailed document which must set out why the Rateable Value is excessive. The Proposal should be evidence based and include a proposed alternative Rateable Value.

At the 2026 Revaluation a Proposal challenging a Rateable Value must be submitted by no later than 31^st July 2026.

Proposals can also be submitted between Revaluations where there is a change of owner, tenant or occupier or if it can be proven that the assessor’s valuation contains a specific type of error. A Proposal can also be submitted where it can be proven that a specific Material Change of Circumstances has occurred affecting the annual value of a property.

Appeal
An appeal is the second stage of the proposal/appeal process. Where the Assessor issues a decision on a Proposal which is not accepted by the Proposer, the Proposer can appeal their decision to the Local Taxation Chamber within a strict time period, requiring a hearing by the Tribunals Service.

Rates Poundage
The rates poundage is set by the Scottish Government and can change annually (at 1^st April). The Rateable Value of a property is multiplied by the rates poundage to arrive at the annual gross rates liability of a property. Various forms of relief may be available depending upon individual circumstances. Relief regulations can be complex and confusing, with most reliefs requiring to be applied for.

The rates poundages for year 2025/26 are:

Basic Property Rate: RV up to £51,000: 49.8p

Intermediate Property Rate: RV from £51,001 to £100,000: 55.4p

Higher Property Rate: RV £100,001 and over: 56.8p

Rates Relief
Various forms of relief may be available, for example:

Empty Property Relief: each local authority has their own Empty Property Relief policy which may (or may not) provide some relief on unoccupied properties.

Small Business Bonus Scheme Relief: SBBS relief may provide relief to ratepayers with properties with RVs below certain amounts.

New & Improved Relief: this provides time limited relief in respect of new properties and where an RV has increased following improvements to a property.

Fresh Start Relief: this provides relief to a new occupier of a property which has been empty and in receipt of Empty Property Relief for at least six months prior to the property being re-occupied.

Charity Relief: this provides relief on properties occupied by registered charities and used wholly or mainly for charitable purposes.

Hospitality Relief: for year 2025/26 this provides 40% relief to specific types of property in the hospitality sector with RVs up to £51,000.

Other reliefs include Day Nursery Relief, Disabled Relef, District Heating Relief, Enterprise Areas Relief, Hardship Relief, Islands and Remote Areas Hospitality Relief, Mobile Masts Relief, New Fibre Relief, Renewable Energy Relief, Rural Relief, Sports Club Relief, Stud Farms Relief and Transitional Reliefs, each of which are subject to their own eligibility criteria.

 Shepherd Contacts
Get in touch with our specialist rating team for advice. Act early – do not wait until it’s too late!

Andrew D Boal HEAD OF RATING
E: andy.boal@shepherd.co.uk
T: 01382 878005
M: 07717 850017

Gary Louttit HEAD OF HOSPITALITY & LEISURE
E: g.louttit@shepherd.co.uk
T: 0141 331 2807
M: 07809 492562

Steve Barnett MANAGING PARTNER
E: s.barnett@shepherd.co.uk
T: 0141 331 2807
M: 07720 466018