Guide

Business rates guidance
Last updated: 18 October 2019

How your rateable value and rates are calculated

Non-domestic rates are calculated by:

  1. Multiplying the rateable value of a property by a tax rate known as 'poundage'.
  2. Subtracting reliefs (discounts).
  3. Subtracting any other adjustments or payments you've already made.

Large businesses will be charged a supplement on top of the poundage. This is called the Large Business Supplement.

Tax rates

The tax rate is set by the Scottish Government.

There are 2 different tax rates:

  1. Poundage (pence in the pound), which in 2019-20 is 49 pence.
  2. Large Business Supplement, which in 2019-20 is 2.6 pence.

The Large Business Supplement is only paid by businesses with a rateable value of over £51,000.

Rateable value

Local councils use the 'rateable value' of a property to calculate business rates.

How rateable values are calculated

Rateable values are calculated by assessors. This process is known as a 'valuation'. Each area in Scotland has its own assessor.

Assessors use different methods to calculate rateable values. For example, they might use information such as rent or floor space.

Assessors will contact you for this information. You're legally required to provide it and may face a penalty if you do not.

For most properties, rateable value is based on an estimate of the rental value of the property. Assessors take rental values from the same point in time, known as the 'tone date'. For current valuations this is 1 April 2015.

Checking a rateable value

You can find the rateable value of a property on Scottish Assessors Association website. You'll also find a breakdown of how a rateable value was calculated for most properties.

Contacting an assessor about a rateable value

You can contact your local assessor if:

  • you think your valuation details are wrong
  • you disagree with the assessor's valuation
  • you move or make changes to your premises
  • the nature of your business changes

You can also update your information on the Scottish Assessors Association website.

When your rateable value might change

Your rateable value could change because of a revaluation or due to a 'material change'.

Revaluations

Rateable values are reviewed every few years. This is called 'revaluation'. The last revaluation was in 2017. The next one will be in 2022.

Material changes

Material changes include:

  • physical changes to your property
  • new roads or changes to access routes
  • events that affect your business, for example a fire in your area

You should contact your assessor if you think your premises have had a material change.