Changes happening in Business Rates

Business Rates 2024-25

The Scottish Government has proposed a range of Non-Domestic Rates measures for 2024-25. See below the recommendations from the recent budget announcements. 

Poundage Rate

The Poundage Rate will be frozen for 2024-25 at 49.8 pence. An Intermediate Property Rate and Higher Property Rate are as follows:

  • Intermediate Property Rate is set at 4.7 pence above the Poundage Rate (54.5 pence) for properties with a Rateable Value between £51,001 and £99,999k from 2024-25
  • Higher Property Rate is set at 6.1 pence above the Poundage Rate (55.9 pence) for properties with a Rateable Value of more than £100k for 2024-25

Revaluation Transitional Relief (RTR)

RTR has been introduced to cap increases in rates liability due to the revaluation in 2023. From 2024-25 the RTR will be: 

  • 25% for properties with a Rateable Value up to £20,000,  
  • 50% for those with a Rateable Value between £20,001 and £100,000, and  
  • 75% for those with a Rateable Value over £100,000  

Small Business Transitional Relief

A Small Business Transitional Relief was introduced for those losing or seeing a reduction in Small Business Bonus Scheme relief or Rural Rates Relief (including due to SBBS exclusions) from 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 £1,200 rising to £1,800 in 2025-26.

Parks Transitional Relief 

A Parks Transitional Relief was introduced in 2023-24. It now provides a 33% relief award for parts of parks that existed but were exempt from valuation for Non-Domestic rating on 31 March 2023, and which became rateable on 1 April 2023. If you were awarded this relief in 2023-24, you don’t need to reapply in 2024-25. 

Empty Property Relief 

We’ve changed the way we award Empty Property relief on Non-Domestic Rates accounts with effect from 1 April 2024.  

Under the Community Empowerment (Scotland) Act 2015 the Council agreed on 25 January 2024 to amend its Empty Property Relief policy with effect from 1 April 2024 to allow relief on an empty land or heritage of 50% for a maximum of 3 months from the date the property first became empty, followed by a 10% relief for a maximum of 9 months, after which no relief is awarded.  Lands and heritages which are empty due to sequestration, liquidation or where occupation is prohibited by law can be awarded 100% relief indefinitely. You can view the Empty Property Relief policy or find more information on the options available to help you bring the property back in to use at ww.scotborders.gov.uk/emptypropertyrelief

Extension of Reliefs

District Heating relief for renewables, which had been due to expire on 31 March 2024, will be extended and expanded. 90% relief will be available until 31 March 2027 for district heating networks where at least 80% of the thermal energy generated derives from renewables. Previously support for renewable district heating was limited to new networks entered on the valuation roll after 1 April 2021. 

Telecommunications mobile mast relief will be extended from 31 March 2029 to 31 March 2031. 

Existing Non-Domestic Rates Reliefs

All other existing NDR reliefs, including the Small Business Bonus Scheme relief, will be maintained.