Non-Domestic Rates Relief Rates To Change For Businesses From 2023-24

The Scottish Government has updated the Business Growth Accelerator relief to account for the revaluation, and properties in receipt of this relief 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.  

To encourage regeneration, including in town centres, the Scottish Government is expanding Fresh Start relief by raising the rateable value threshold at which properties qualify for the relief from £95,000 to 100,000.

Properties already in receipt of Fresh Start relief on 31 March 2023 will also continue receiving relief for the remaining duration of the relief award regardless of whether the new rateable value is above the new qualifying threshold.  

The Small Business Bonus Scheme (SBBS) has been reformed and eligibility extended so that 100,000 properties are taken out of rates altogether.?

100% relief will be available for properties with a rateable value of up to £12,000 and the upper rateable value for individual properties to qualify for SBBS relief will be extended from £18,000 to £20,000.

Relief is to be tapered for properties with a rateable value between £12,001 and £20,000. Car parks, car spaces, advertisements, and betting shops will be excluded from eligibility for SBBS from 1 April 2023. 

The Scottish Government will offer a Small Business Transitional Relief to ensure that properties that lose SBBS or Rural rates relief eligibility, do so in a phased manner.

For those losing or seeing a reduction in these reliefs (including due to the above exclusions introduced for SBBS relief) on 1 April 2023, 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.

This will protect an estimated 19,000 properties that will lose some or all of their eligibility for SBBS relief or Rural relief. ? 

There will also be a Revaluation Transitional Relief introduced to protect those most affected by the move to a three-year valuation cycle.? The rate increases will also be capped up to the next revaluation in 2026. ?This relief will ensure that the gross bills of an estimated 84,000 properties are lower in 2023/24 than they otherwise would have been. 

To support the attainment of the Scottish Government’s Net Zero targets, and incentivise investment in renewables, the Scottish Government will introduce a non-domestic rating exemption for prescribed plant and machinery used in onsite renewable energy generation and storage in Scotland from 1 April 2023 until 31 March 2035.

Day Nursery Relief, which was due to end on 30 June 2023, has been extended indefinitely. ?Enterprise Areas relief will be extended by one year to 31 March 2024. ?Empty Property Relief is being devolved to local authorities on 1 April 2023. ? 

All the other existing NDR reliefs will be maintained in 2023/24. In total, NDR reliefs are forecast to save non-domestic ratepayers £744 million in 2023/24.

Scottish Budget