Claim Small Business Bonus Scheme relief

The Small Business Bonus Scheme (SBBS) is Scotland's main rates relief for small businesses. It provides up to 100% relief from non-domestic rates, so many small businesses in Scotland pay no business rates at all. The scheme was reformed from 1 April 2023, introducing tapered relief bands and new exclusions.

When this applies

You may be eligible for SBBS if you occupy one or more business properties in Scotland, the combined rateable value (RV) of all of them is £35,000 or less, each one has an RV of £20,000 or less, and they are actively occupied and used for business. Properties outside Scotland do not count towards your combined RV.

Unlike England's Small Business Rate Relief, which generally gives full relief on a single property, SBBS can cover several properties based on their combined RV.

Relief rates in detail

Single property

If you are liable for rates on only one property in Scotland:

• an RV up to £12,000 gets 100% relief, so you pay nothing
• an RV of £12,001 to £15,000 gets relief tapering from 100% to 25%
• an RV of £15,001 to £20,000 gets relief tapering from 25% to 0%
• an RV over £20,000 is not eligible

Multiple properties

If you are liable for rates on more than one property in Scotland, relief depends on both the combined RV of all your properties and each property's own RV:

• if the combined RV is up to £12,000, each property gets 100% relief
• if the combined RV is £12,001 to £35,000, each property with an RV of £15,000 or less gets 25% relief, and each property with an RV of £15,001 to £20,000 gets relief tapering from 25% to 0%
• if the combined RV is over £35,000, no property gets SBBS relief

You must declare all properties you occupy or are entitled to occupy in Scotland on your application, including any that are unoccupied.

Excluded properties

These property types are not eligible for SBBS, whatever their rateable value:

• car parks and individual parking spaces, excluded from 1 April 2023
• advertising sites and hoardings, excluded from 1 April 2023
• betting shops, excluded from 1 April 2023
• payday lending premises, excluded from 1 April 2014
• unoccupied properties, excluded from 1 April 2020, because the property must be in active use

If your property was excluded from SBBS on 1 April 2023 because of these changes, you may qualify for Small Business Transitional Relief instead.

Transitional relief and interactions with other schemes

Small Business Transitional Relief

If you lost SBBS eligibility or received reduced relief because of the April 2023 reforms or the 2023 revaluation, you may qualify for Small Business Transitional Relief. This capped the increase in your rates bill, compared with what you paid on 31 March 2023, at £600 in 2023/24, £1,200 in 2024/25 and £1,800 in 2025/26.

You must apply separately for transitional relief through your local council. It is not applied automatically.

Interactions with other reliefs

SBBS interacts with other Scottish rates reliefs:

• Fresh Start Relief gives 100% relief for 12 months when you move into a property that has been empty for 6 months or more. You cannot normally claim it and SBBS on the same property at the same time, but you may move to SBBS once Fresh Start ends.
• Rural Rates Relief is available for qualifying properties in settlements with populations under 3,000. If you are eligible for both it and SBBS, you usually receive whichever gives the greater benefit.
• Retail, Hospitality and Leisure (RHL) Relief for 2026/27 to 2028/29 is tiered: 15% for standard retail, hospitality and leisure properties with a rateable value up to and including £100,000; 40% for licensed hospitality premises and music venues; and 100% for specified island and remote rural hospitality locations. Where you qualify, it can apply alongside SBBS if you have liability left after SBBS.
• Day Nursery Relief gives 100% relief, separately from SBBS, to properties used wholly or mainly as a day nursery.
• The Business Growth Accelerator delays the effect on your rates bill for 12 months if your property's value rises because of improvements. It does not affect SBBS eligibility.

Subsidy control

SBBS relief counts as Minimal Financial Assistance (MFA) under the Subsidy Control Act 2022. The total MFA a single enterprise can receive from all public bodies is capped at £315,000 over a rolling three-year period. For most small businesses SBBS relief is well within this limit, but check if you receive other public financial assistance.