Guide

Non-domestic rates guidance
Last updated: 1 September 2020

How your rateable value and rates are calculated

Non-domestic rates are calculated by:

  1. Multiplying the rateable value of a property by 49.8 pence (poundage).
  2. Subtracting reliefs (discounts).
  3. Subtracting any other adjustments or payments you've already made.

Property supplements

Large businesses will be charged a supplement on top of the poundage. From April 2020, the Large Business Supplement was replaced by 2 new rates:

  • the Intermediate Property Rate (51.1 pence – 1.3 pence above basic property rate) for properties with rateable values from £51,001 to £95,000
  • the Higher Property Rate (52.4 pence - 2.6 pence above basic property rate) for properties with rateable values in excess of £95,000

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 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 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 is 1 April 2015.

Penalty for not giving information

From 1 April 2020 you can get a civil penalty if you fail to give information. This replaces the current criminal penalty.

Minimum days after information first requested Penalty (share of rateable value) Penalty if property not yet entered on roll
28 1% but not less than £200 £1,000
70 21% but not less than £1,200 £11,000
84 71% but not less than £2,200 £61,000

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 2023 subject to Parliament.

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.

Appeals

If you think it's wrong, you can ask your local assessor to check your rateable value. If you still disagree with the assessor's valuation, you can make an appeal.

You can make your appeal:

Find more information about making a non-domestic rates appeal.