Rates Payments

There are two principal factors which contribute to the rates bill received by every non-domestic ratepayer; the rateable value of the property and the business rates poundage (or non- domestic rate) fixed by the Scottish Government. In addition, actual liability will vary dependent on other factors such as charitable and vacant property reliefs etc.

Assessors are responsible for determining only the rateable value and your local Council is responsible for rates collection and administration of the various reliefs which may be available.

The poundage rate which the then Scottish Executive fixed from 01/04/05 was 46.1p – down from the 2004 rate of 48.8p. This reflected that the 2005 Revaluation produced an average increase in rateable values in Scotland of 13.3%. The executive also took account of a 2% inflation adjustment and an estimated 4.6% loss arising from Revaluation appeals.

For 2006/07 the Executive fixed a rate of 44.9p. and for 2007/2008 it was 44.1p. For 2008/2009 the Scottish Government fixed a rate of 45.8p and a poundage supplement for larger properties (RV over £29,000) of 0.4p. For 2009/2010 the rate was set at 48.1p and the supplement remained at 0.4p. Taking account of the Revaluation which came into effect on 1 April 2010, the Scottish Government has set the rate for 2010/2011 at 40.7p and a supplement of 0.7p for properties where the rateable value is greater than £35,000.

The Small Business Bonus Scheme replaced the Small Business Rates Relief Scheme with effect from 1 April 2008. Under the new scheme relief was set at 80% for properties with a total rateable value up to £8,000, 40% for properties with a total RV between £8,001 and £10,000 and 20% for values between £10,001 and £15,000. For 2009/2010 the Bonus levels were increased to 100% (<£8K) 50% (£8 -10K) and 25% (£10 - 15K).

For 2010/2011 levels of relief under the Small Business Bonus Scheme have been set at 100% for eligible properties with a combined RV up to £10,000, 50% for those with a combined RV between £10,001 and £12,000 and 25% for those with a combined RV between £12,001 and £18,000. Additionally, businesses with multiple properties whose cumulative RV is £25,000 or less will be eligible for relief of 25% for each property with a rateable value less than £18,000.

However, the relief will be subject to the operation of other reliefs, such as empty property relief; rural rate relief; charitable rate relief; disabled persons rate relief; and discretionary relief for not-for-profit recreation clubs.

For more information about the Scottish Government’s position regarding rates payments etc click on the link below.