Changes happening in Business Rates
The Scottish Government has proposed a range of Business Rates measures for 2021-22.
The Poundage Rate has been set for 2021-22 at 49 pence. An Intermediate Property Rate and Higher Property Rate has replaced the Large Business Supplement as follows:
- Intermediate Property Rate is set at 1.3 pence above the Poundage Rate (50.3 pence) for properties with a Rateable Value from £51,001 to £95k
- Higher Property Rate is set at 2.6 pence above the Poundage Rate (51.6 pence) for properties with a Rateable Value of £95,001 or over
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 phone 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% in real terms (adjusted for inflation).
Further details are avaialble on Transitional Relief.
This relief is capped under the Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2021 and can only be awarded as TCA de minimus as the activity is commercial in nature and the recipients recieve an advantage on selective basis due to the geographic restrictions that apply.
Business Growth Accelerator
Business Growth Accelerator (also known as New and Improved Properties) relief is continuing into 2021-22.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% 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.
From 2021-22 onwards, BGA for property improvements will be available even where there is an increase in rateable value due in whole or part to a change in the way the lands and heritages are being used. This means a property that was converted from one type of use to another (eg. office to hotel) may qualify for relief, subject to the other eligability creteria.
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.