Non-domestic rates are calculated by:
- Multiplying the rateable value of a property by a tax rate based on the property value.
- Subtracting reliefs (discounts).
- Subtracting or adding any other adjustments or payments you've already made.
- The basic property rate or ‘poundage’ of 49.8 pence for properties with rateable values up to £51,000.
- The intermediate property rate of 51.1 pence for properties with rateable values from £51,001 to £100,000.
- The higher property rate of 52.4 pence for properties with rateable values more than £100,000.
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 usually ask property owners, tenants or occupiers for this information. This is to make sure rateable value calculations are as accurate as possible.
Assessors will contact you for this information. You need to give it by law and may face a penalty if you do not. Contact your local assessor right away if you do not hold the information they ask for.
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 was 1 April 2022. The tone date for the next revaluation is 1 April 2025.
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 when there’s a:
'material change' to your property
change of use to the property
Material changes could 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 or change of use.
If you think your rateable value is wrong, you can ask your local assessor to check it. This is called making a proposal.
If you still disagree with the assessor's valuation, you can usually then make an appeal.
Find more information about making a non-domestic rates proposal or appeal.
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