Understand business rates in Scotland

Non-domestic rates, also called business rates, are a property tax that helps pay for local council services. You usually pay them if you occupy a non-domestic property such as a shop, office, pub, hotel, warehouse or factory. The owner pays in some cases, for example when the property is empty. You may also pay on the part of your home that you use for business, if you work from home or let out a room.

The Scottish Government sets the rates, councils send the bills and collect the money, and independent assessors value the properties. Your council usually sends your bill in February or March, covering 1 April to 31 March. You can pay in one sum or by instalments. The bill covers rates only, not rent, water charges or other costs.

Some premises are exempt, including religious buildings, agricultural land and buildings, and fish farms. Your local assessor can tell you whether yours is exempt.

How your bill is worked out

Your council takes the rateable value of your property and multiplies it by the poundage for your rateable value band. The poundage is a number of pence for each pound of rateable value, and Scottish Ministers set it each year, effective from 1 April. The council then subtracts any reliefs and adjusts for earlier overpayments or underpayments.

The rateable value is set by the assessor for your area, not by your council. For most properties it is an estimate of the property’s rental value.

Revaluation

Your rateable value usually stays the same between revaluations unless something changes at your property, such as an extension or demolition, new roads or access routes, or a change in the nature of your business.

Reliefs

If you did not apply when you were entitled to relief, a council can sometimes backdate it.

If you think your bill or valuation is wrong

To challenge your rateable value, make a proposal to your local assessor, online through the Scottish Assessors Association website or in writing, with your reasons and evidence. There is no fee. Keep paying your bill while the assessor considers it. If you succeed, your council refunds any overpayment and may add interest. The deadline depends on why you are challenging: for the 2026 revaluation it was the later of four months after the date on your revaluation notice and 31 July 2026, a new owner or occupier has four months from taking over, and a change to your property can be raised until four months after the next valuation roll takes effect.

If the assessor refuses, or changes the value in a way you did not agree, you can usually appeal to the Local Taxation Chamber of the First-tier Tribunal for Scotland within 28 days of the decision. There is no fee. To challenge a council decision on your bill or a relief, ask the council for an internal review.

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