Scotland has significant regulatory differences from England across licensing, planning, property rates, employment, and tax. If your business operates in both countries — or you are moving a business across the border — you need to understand where the rules diverge.
Alcohol licensing
| Legislation | Licensing (Scotland) Act 2005 | Licensing Act 2003 |
| Licensing authority | Licensing Board (one per council) | Local council licensing committee |
| Licensing objectives | 5 objectives (includes protecting children) | 4 objectives |
| Personal licence duration | 10 years (must renew) | Indefinite (no renewal) |
| Qualification | SCPLH (Scottish Certificate) | APLH (Award for Personal Licence Holders) |
| Off-sales hours (max) | 10am–10pm | No statutory maximum |
| Minimum unit pricing | 65p per unit (mandatory) | Does not apply |
Planning and building
| National policy | NPF4 (statutory development plan) | NPPF (material consideration only) |
| Building standards | Building warrant (local authority only) | Building regulations (Building Control or Approved Inspector) |
| Use classes | T&CP (Use Classes) (Scotland) Order 1997 | T&CP (Use Classes) Order 1987 (as amended) |
| Appeals | Local Review Body / Scottish Ministers | Planning Inspectorate |
| Revaluation cycle | 3 years (from 2023) | 3 years (from 2026) |
Business rates
| Multiplier system | Three tiers (basic, intermediate, higher) | Two tiers (standard, small business) |
| Small business relief | SBBS: 100% relief up to £12,000 RV; tapers 100%→25% £12,001–£15,000, then 25%→0% £15,001–£20,000 (single property; £35,000 is the cumulative multi-property eligibility cap, not a relief band) | SBRR: 100% relief up to £12,000 RV; tapered £12,001–£15,000 |
| Valuation body | Scottish Assessors Association | Valuation Office Agency |
Employment and fair work
- Fair Work First - Scotland requires payment of the real Living Wage (£13.45/hour) for public sector grant recipients. England has no equivalent policy.
- Employment law - most employment law is reserved to Westminster and applies UK-wide (including NMW, unfair dismissal, TUPE, and equality).
Short-term lets
- Scotland - mandatory licensing scheme since October 2023 for all short-term lets. Councils can designate control areas requiring planning permission.
- England - no mandatory licensing scheme (as of early 2026). A registration scheme is proposed but not yet implemented.
Tax
- Scottish income tax - Scotland sets its own income tax rates and bands (currently 6 bands vs England's 3). LBTT replaces Stamp Duty Land Tax for property purchases.
- Corporation tax - reserved to Westminster — same rates apply UK-wide.
- VAT - reserved to Westminster — same rates and thresholds UK-wide.
Visitor levy
Scotland has enabled councils to levy a charge on overnight stays (Visitor Levy (Scotland) Act 2024). Edinburgh starts July 2026. England has no equivalent power.
Legal basis
Primary legislation and key regulations
Scotland Act 2016
Scotland Act 2012
Scotland Act 1998
Planning (Scotland) Act 2019
Town and Country Planning (Scotland) Act 1997
Browse UK legislation (opens in a new tab)
legislation.gov.uk