Changes happening in Business Rates

Business Rates 2022-23

The Scottish Government has proposed a range of Business Rates measures for 2022-23.

Poundage Rate

The Poundage Rate has been set for 2022-23 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 from £51,001-£95k
  • Higher Property Rate is set at 2.6 pence above the Poundage Rate (52.4 pence) for properties with a Rateable Value of £95,001 or over

Payment and recovery changes

Non Domestic Rates is payable in monthly instalments that run from May to the following February. Businesses also had the option to defer payment until September and catch up by making a six month’s lump sum payment. They then continued with the monthly instalments from November to February. Where these instalments were not paid the recovery process could start at the time where the rates account was more than four months in arrears.

The Barclay Review recommended that local authorities should be able to act on unpaid Non-Domestic Rates earlier than was allowed under the existing legislation. The Scottish Government accepted this recommendation and legislated for the change.

From 1 April 2022, we are required to begin the recovery process as soon as any instalment is more than one month in arrears. This means that businesses must now pay their first instalment from May 2022, and cannot defer payments until October 2022.

Local authorities do not have any discretion in this matter and cannot delay the introduction of the change.

We can provide the option to spread instalments over 12 months by paying Non Domestic Rates by Direct Debit.   

If you have any concerns over your ability to pay, contact us.

Transitional Relief

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 2022-23 for the same hospitality categories defined in 2018-19. If you are entitled, any increase in your Business Rates will be capped at 2.247% 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 receive 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 2022-23.

From 1 April 2022 the period where a property can claim Business Growth Accelerator has been capped at a maximum of four years. To allow for the transition, if the relief has been awarded prior to 1 April 2021, it will continue until 31 March 2025, or for a period of 12 months if the premises should become occupied, whichever date is sooner.

Find out more about Business Growth Accelerator.

Self-catering accommodation

Additional criteria has come into effect from April 2022 regarding the letting of a self-catering property.

Find out more about self-catering accommodation