Changes happening in Business Rates

Business Rates 2023-24

The Scottish Government has proposed a range of Business Rates measures for 2023-24. These are recommendations from the recent budget announcements. This information will be updated when relevant legislation has been issued which is likely to be around mid February 2023

Poundage Rate

The Poundage Rate will be frozen for 2023-24 at 49.8 pence. An Intermediate Property Rate and Higher Property Rate are as follows:

  • Intermediate Property Rate is set at 1.3 pence above the Poundage Rate (51.1 pence) for properties with a Rateable Value between £51,001 and £99,999k from 2023/24
  • Higher Property Rate is set at 2.6 pence above the Poundage Rate (52.4 pence) for properties with a Rateable Value of more than £100k for 2023/24

Revaluation Transitional Relief (RTR)

An RTR will be introduced to cap increases in rates liability due to the revaluation. Further details regarding this will be published in due course when final details are available to the Council.

Business Growth Accelerator

Properties in receipt of Business Growth Accelerator 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.

Small Business Bonus Scheme (SBBS)

It is proposed to reform SBBS from 1 April 2023. 100% relief will continue to be available for properties with a rateable value up to £12k instead of the current £15k.

The upper rateable value threshold for individual properties to qualify for SBBS relief will be increased from £18k to £20k. 

The relief will taper from 100% to 25% for properties with Rateable Values between £12,001 and £15k, and from 25% to 0% for properties with Rateable Values between £15,001 to £20k. The cumulative rules including the overall Rateable Value threshold of £35k will remain.

Car parks, car spaces, advertisements and betting shops will be excluded from eligibility for SBBS from 1 April 2023.

Small Business Transitional Relief

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, to ensure that properties that lose SBBS relief eligibility do so in a phased manner. 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 Machinery

Prescribed Plant and Machinery used for onsite renewable energy generation and storage will be exempt from rating from 1 April 2023 until 31 March 2025.

Fresh Start 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 up to which properties qualify for Fresh Start Relief will increase from £95k to £100k.

Enterprise Areas

Enterprise Area relief will be extended by one year to 31 March 2024.