Business Rates and the 2017 Revaluation
Business rates are a tax levied on properties. Most non-domestic properties need to pay business rates, in
a similar way to households paying council tax. The revenue raised is used as part of the funding for local
services, and is collected by Scottish councils.
How are business rates calculated?
Business rates are calculated by multiplying the rateable value of your non domestic property (based on
the notional annual rent) by the poundage rate (or multiplier) set annually by the Scottish Government.
In addition, many properties receive 100% or partial rates relief as a tax discount.
The 2017-18 Non-Domestic Rate poundage rate is provisionally set at 46.6p. For properties with a rateable
value of more than £51,000, businesses will have to pay a supplement of 2.6p, therefore their effective
poundage rate will be 49.2p.
Usually the poundage increases each year by the rate of inflation to ensure that the same amount of
money (in real terms) is collected each year. You can check your current rateable value on the Scottish
Assessors’ Association website www.saa.gov.uk
The Scottish Government has developed a business rates calculator whichwhich will give you a provisional
indication of your bill next year. In addition you can check your draft rateable value for 2017-18 on the
Scottish Assessors’ Association website now – www.saa.gov.uk
2017 will also see a revaluation of business rates. These usually occur every 5 years when Scotland’s
assessors conduct a revaluation exercise to determine the rateable value of all public and private non
domestic properties. However, the planned revaluation in 2015 did not take place and was instead
postponed until 2017.
To find out how you will be affected by the revaluation or for the full report click here.