Changes happening in Business Rates
The Scottish Government has proposed a range of Business Rates measures for 2020/21.
The Poundage Rate has been set for 2020/21 at 49.8p. An Intermediate Property Rate and Higher Property Rate has replaced the Large Business Supplement as follows:
- Intermediate Property Rate is set at 1.3p above the Poundage Rate (51.1p) for properties with a Rateable Value from £51,001 to £95k
- Higher Property Rate is set at 2.6p above the Poundage Rate (52.4p) for properties with a Rateable Value of £95,001 or over.
Due to the COVID-19 outbreak, Scottish Government have introduced a 1.6 per cent rates relief for all non-domestic properties in Scotland. This relief will be applied automatically to accounts once the software changes have been made.
Small Business Bonus Relief
From 1 April 2020 businesses must be in occupation to receive Small Business Bonus Relief.
If you currently receive this relief and your business property is now no longer occupied you should contact us by emailing [email protected] or call 0300 100 1800 to let us know the date it became unoccupied.
This is a relief available to certain businesses that have been faced with a steep increase in their rates bill due to the 2017 revaluation. It has been confirmed that this will continue for 2020/21 for the same hospitality categories defined in 2018/19. If you are entitled, any increase in your Business Rates will be capped at 1.747 per cent in real terms (adjusted for inflation). This will also be adjusted to take into account the reduction in the gross rates bill by 1.6 per cent as introduced by the Scottish Government due to the COVID-19 outbreak.
Further details are avaialble on Transitional Relief.
Eligibility to Transitional Relief is subject to compatibility with EU State Aid rules.
Business Growth Accelerator (also known as New and Improved Properties)
Business Growth Accelerator relief is continuing into 2020/21.There are two relief types:
New Build Properties
If your premises are a new build, entered onto the Valuation Roll from 1 April 2018 onwards, you will pay no Rates until the premises are occupied.
Once occupied, the ratepayer will continue to receive full 100 per cent Rates relief for a further 12 months.
Expanded or Improved Premises
Where premises are expanded or improved and the rateable value increases as a result of this, you will not pay this increase for 12 months.
The Rates for this period will be based on the ratable value prior to any such improvements being made.
Find out more about Business Growth Accelerator.