Business Rates

Non-Domestic Rates New Reliefs and Schemes

01 April 2026 brings some changes to the Non-Domestic rating system in Scotland. This section will explain what these changes are and how they will affect the issue of your rates bill.

In addition to all subjects being revalued by the Orkney and Shetland Valuation Joint Board ("the Assessor"), there are changes to some relief schemes. More details on the relief schemes and other notable changes can be found further down this page.

These relief schemes introduce some new complexities and we are currently working with our software suppliers to enable these reliefs to be available to qualifying ratepayers as soon as possible.

All awards of Small Business Bonus Scheme Relief will be cancelled from 31/03/2026 and application forms for the new scheme issued with the Annual Bills.

It is essential that these applications are completed and returned to us as soon as possible to allow us to issue updated bills.

The following changes will take effect from 01 April 2026

The Rate poundage

The rate poundage and supplements are set annually by the Scottish Government and apply across Scotland.

For financial year 2026 the poundage is 48.1 pence per pound of rateable value.

An intermediate supplement will mean that an additional 5.4 pence above the rate poundage (giving a total of 53.5p) will apply where the rateable value is between £51,001 and £100,000

A large business supplement will mean that an additional 6.7 pence above the rate poundage (giving a total of 54.8p) will apply where the rateable value exceeds £100,000

A search facility is available on the Scottish Assessors website to view the rateable value of any subjects liable for Non-Domestic Rates.

Amendments to the eligibility criteria for relief under the Small Business Bonus Scheme

The Scottish Budget 2026-27 sets out that eligible properties may receive Small Business Bonus Scheme (SBBS) relief between 1 April 2026 and 31 March 2029.

In addition to existing exclusions for empty premises and premises used for pay day lending, car parks, parking spaces and advertising, Betting Shops, Deer Forests, Shootings and properties which are used wholly or mainly for a purpose for which a short-term let licence is required, in accordance with article 4 of the Civic Government (Scotland) Act 1982 (Licensing of Short-term Lets) Order 2022, but for which no such licence has been obtained (from 1 April 2026),

This relief is likely to be considered a subsidy under the Act. Public authorities should consider whether this relief is awarded as MFA, or whether it meets the other subsidy control requirements of the Act. This relief is listed in the Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2023.

Transitional Relief awards to support those seeing a rise in charges due to revaluation

A revaluation of all Non-Domestic rates subjects will take effect from 01 April 2026; the first such revaluation since 2023.

Rates relief schemes have been introduced to support those that will see a significant rise in the amount payable because of this.

There will be a general scheme based on increases in rateable value, a scheme for those losing certain relief awards and a scheme for premises being charged rates for the first time.

Further details are available below relating to Transitional Relief

For more general information on all valuation matters, please visit the Scottish Assessors Association website.

Rates payable on empty premises

As of 01 April 2023 each Local Authority in Scotland has full autonomy in choosing to set a reduced charge for premises that are empty

For financial year 2023, Shetland Islands Council chose to replicate the previous schemes in place up to 31 March 2023, from 01 April 2024 the Shetland Islands Council policy is to award all empty properties a discount of 50% for the first 3 Months reducing to 10% thereafter.

Transitional Relief for financial years 2026 to 2028

Provisions have been made by the Scottish Government to limit the increase in Non-Domestic Rates charges, resulting from the 2026 revaluation exercise, effective from 01 April 2026

General Revaluation Transitional Relief 

A General Revaluation Transitional Relief is available for all property types, capping gross bill increases at a specified percentage increase, dependent on the rateable value on 1 April 2026.

The gross charge for the purposes of this relief is the rateable value on that day multiplied by a poundage factor; the poundage factor being the non-domestic property rate for that year - either the Basic Property Rate, Intermediate Property Rate of Higher Property Rate, as the case may be.

Properties with rateable value on 1 April 2026 up to and including £20,000

  Properties with rateable value on 1 April 2026 from £20,001 and up to and including £100,000

 Properties with rateable value on 1 April 2026 in excess of £100,000

Self-catering Revaluation Transitional Relief is likely to be considered a subsidy under the Act as it only for particular businesses within the wider holiday accommodation sector. This relief is awarded as MFA, and therefore a declaration will be required as part of the application process.

Eligible self-catering holiday accommodation

 In order to be eligible for this relief, the property had to be shown in an entry on the valuation roll on both 31 March 2026 and 1 April 2026. Properties with a nil RV on 1 April 2026, or which had a nil RV on 31 March 2026 are not eligible. Eligibility for the relief also ceases if there is a merger, split or reorganisation of the valuation roll entry for the property occurring after 1 April 2026.

Small Business Transitional Relief

This relief reduces the net bill increase in 2026-27 to 25% of what it otherwise would have been taking into account other reliefs, including the General Revaluation Transitional Relief, and is available for properties:

entitled to SBBS relief on 31 March 2026;

entitled to mandatory or discretionary Rural Relief on 31 March 2026 and no longer entitled on 1 April 2026 due to their rateable value increasing at the 2026 revaluation beyond the qualifying threshold(s) set out in the Non-Domestic Rating (Rural Areas and Rateable Value Limits) (Scotland) Order 2005, as amended;

entitled to hospitality relief on 31 March 2026; and

entitled to Small Business Transitional Relief on 31 March 2026.

In 2027-28 and 2028-29 it will reduce the net bill increases to 50% and 75% respectively of what they would otherwise have been.

Properties that require a short-term let licence to operate but have not obtained one are not eligible for Small Business Transitional Relief.

To be eligible for this relief, the property requires to have been shown in an entry on the valuation roll on both 31 March 2026 and 1 April 2026. Properties with a nil RV on 1 April 2026 or which had a nil RV on 31 March 2026 are not eligible. Eligibility ceases if there is a merger, split or reorganisation of the valuation roll entry for the property occurring after 1 April 2026.

This relief must be applied for, the application is included within the Small Business Bonus Scheme application form.

Retail, Hospitality and Leisure Relief

The Scottish Budget 2026-27 sets out that eligible retail, hospitality and leisure properties may receive relief between 1 April 2026 and 31 March 2029.

100% relief is available for eligible properties in the retail, hospitality and leisure sectors located on islands, or in specified remote areas (Cape Wrath, Knoydart and Scoraig).  

This relief is capped at £110,000 per year per ratepayer. This relief is likely to be considered a subsidy under the Act and is listed in the Non-Domestic Rates (Restriction of Relief) (Scotland) Regulations 2023