Concessions

2023/24 Amendments - Non-Domestic Rates

These changes to the Non-Domestic Rate will come into effect on 1 April 2023.

Poundage:

For 2023/24 are:

Rateable Value

Poundage

up to £51,000

49.8 pence (basic property rate)

£51,001 to £100,000

51.1 pence (including intermediate property rate of 1.3 pence)

£100,001 and above

52.4 pence (including higher property rate of 2.6 pence)


·        A Revaluation Transitional Relief will be introduced to cap increases in rates liabilities due to revaluation. The caps (in cash terms) in 2023-24 will be 12.5% for small properties, 25% for medium-sized properties and 37.5% for large properties, rising in subsequent years. Further detail is set out in the table below. 

·        Small Business Bonus Scheme relief will be reformed. 100% SBBS relief will continue to be available for properties with a rateable value up to £12,000. The upper rateable value threshold for individual properties to qualify for SBBS relief will be extended from £18,000 to £20,000. Relief will taper from 100% to 25% for properties with RVs between £12,001 and £15,000; and from 25% to 0% for properties with RVs between £15,001 to £20,000.  The cumulative rules including the RV threshold of £35,000 will remain. Car parks, car spaces, advertisements and betting shops will be excluded from eligibility for SBBS from 1 April 2023. 

·        A Small Business Transitional Relief will be introduced for those losing or seeing a reduction in Small Business Bonus Scheme Relief or Rural Rates Relief (including due to SBBS exclusions) on 1 April 2023. The maximum increase in the rates liability relative to 31 March 2023 will be capped at £600 in 2023-24, rising to £1,200 in 2024-25 and £1,800 in 2025-26. 

·        Prescribed plant and machinery used for onsite renewable energy generation and storage will be exempt from rating from 1 April 2023 to 31 March 2025. 

·        Properties in receipt of Business Growth Accelerator relief on 31 March 2023 will continue to be eligible for an equivalent percentage of relief on the new rateable value for the remaining duration of the relief. 

·        Properties in receipt of Fresh Start relief on 31 March 2023 will continue to receive relief for the remaining duration of the relief, regardless of whether the new rateable value is above the qualifying threshold. From 1 April 2023, the rateable value to which properties qualify for Fresh Start relief will increase from £95,000 to £100,000. 

·        Empty Property Relief will be devolved to local authorities on 1 April 2023 with a concurrent transfer to local government.  It is likely the existing reliefs will remain in place for 2023/24 with reviews taking place prior to 2024/25. Click here for more details.  

Year-on-year Scottish 2023 Revaluation Transitional Relief caps (%)   

Rateable Value   

2023-24

2024-25

2025-26

Small (up to £20,000)   

12.5

25

37.5

Medium (£20,001 to £100,000)   

25

50

75

Large (Over £100,000)   

37.5

75

112.5  

For more information regarding the Budget please visit www.gov.scot/budget/