2023 Non Domestic Rates
Changes to Non Domestic Rates from 1 April 2023
The Scottish Government has made a number of changes to Non Domestic Rates in 2023-24. The principal changes are:
Revaluation
A revaluation of all non domestic rates properties will be effective from 1 April 2023. Changes in property rateable values may impact on entitlement to some reliefs.
Rates Poundage
The 2023/24 rates poundage is to be frozen at 49.8 pence.
Intermediate Business Supplement is an additional 1.3 pence above the rate poundage (51.1 pence) for properties with a rateable value from £51,001 to £100,000.
Large Business Supplement is an additional 2.6 pence above the rate poundage (52.4 pence) for properties with a rateable value over £100,000.
Reliefs and Exemptions
2023-24 Small Business Bonus Scheme functions in the following manner:
- Single property with a rateable value of up to £12,000 - 100% relief
- Single property with a rateable value of £12,001 to £15,000 - relief tapers from 100% to 25%
- Single property with a rateable value of £15,001 to £20,000 - relief tapers from 25% to 0%
- Multiple properties with a cumulative rateable value of up to £12,000 - 100% relief on each property
- Multiple properties with a cumulative rateable value of £12,001 to £35,000 - 25% relief on each property with a rateable value of up to £15,000 and relief tapers from 25% to 0% for properties with a rateable value of £15,001 to £20,000
Click here for more details of the 2023 Small Business Bonus Scheme.
General Revaluation Transitional Relief - This relief scheme will look at the gross amount of rates payable on a property at 31 March 2023 and the gross post-revaluation amount payable on 1 April 2023 and will limit increases in the following way:
- for properties with a post-revaluation rateable value of up to £20,000, the increase in the amount payable in 2023-24 will be limited to 12.5%
- for properties with a post-revaluation rateable value from £20,001 to £100,000, the increase in the amount payable in 2023-24 will be limited to 25%
- for properties with a post-revaluation rateable value of over £100,000, the increase in the amount payable in 2023-24 will be limited to 37.5%
General Revaluation Transitional Relief will be applied to the qualifying properties prior to the issue of the 2023-24 rates bills. Ratepayers do not need to apply for it.
Click here for more details of the 2023 General Revaluation Transitional Relief.
Transitional Relief - Small Business Bill Cap - this relief is available for properties previously entitled to Rural Relief and the Small Business Bonus Scheme but are no longer entitled to relief due to an increase in rateable value as a result of 2023 Revaluation or due to a change in the legislation underpinning the relief. The scheme will limit the amount payable for qualifying properties in 2023-24 at £600.
Click here for more details of the 2023 Small Business Bill Cap Transitional Relief..
Transitional Relief - Parks - this relief limits the amount of rates payable in 2023-24 by properties which are situated in parks and have been rated from 1 April 2023 as a result of the recommendation of the Barclay Review of Non-Domestic Rates.
Click here for more details of the 2023 Parks Transitional Relief.
Nursery Relief - this was due to end on 30 June 2023 but will now be extended indefinitely.
Fresh Start Relief - from 1 April 2023 the qualifying rateable value for this relief will increase from £95,000 to £100,000.
Enterprise Relief - this relief will be extended by one year to 31 March 2024.
Empty Property Relief - from 1 April 2023 Scottish Government devolved responsibility for Empty Property Relief policy to local authorities. For further details click here
Retail, Hospitality and Leisure Relief - Scottish Government has not put in place a relief scheme for these classes of business in the 2023-24 financial year.