Rates revaluation of non-domestic properties in Scotland 2017
Summary analysis of changes in the rateable value of non-domestic properties in Scotland following the 2017 revaluation.
Introduction
1. This paper presents an analysis of the changes in rateable value of non-domestic properties in Scotland following the 2017 revaluation, together with the key non-domestic rates policies taking effect for 2017-18. The table below outlines the main points.
Overview of the 2017 revaluation
| 2016-17 | 2017-18 | % increase | |
|---|---|---|---|
| Total rateable value (excluding designated utilities) | £6,215m | £6,561m | 6% |
| Total rateable value (including designated utilities) | £6,815m | £7,358m | 8% |
Key policy changes
| 2016-17 | 2017-18 | Resulting in… | |
|---|---|---|---|
| Poundage rate | 48.4p | 46.6p | Reduction in bills of over £100m per annum (before reliefs) |
| Small Business Bonus Scheme - upper threshold for 100% rates relief (total rateable value) | £10,000 | £15,000 | 100,000 properties paying no rates as a result of SBBS alone |
| Large Business Supplement - lower threshold (rateable value) | £35k | £51k | 8,000 fewer properties paying the supplement (which remains 2.6p) |
| Cap on rates increases for certain property uses, including: hotels; pubs; restaurants; hydropower up to 1 MW; offices in Aberdeen & Aberdeenshire. | - | Real-terms 12.5% cap | Up to 9,500 properties eligible for a relief package worth up to £40m |
| Mandatory rural rates relief | 50% | 100% | Up to 600 rural properties benefiting |
What this means for businesses in Scotland
- At least 50% of properties paying no rates at all in 2017-18
- Average net bills (after reliefs) reducing by 2-3% in cash terms*
- Poundage rate reduced by 3.7%
- Rates cap providing up to £40m of support to up to 9,500 properties, while all revaluation decreases take effect immediately
- At least 70% of properties see either a reduction or no change in their net bill (after reliefs) following revaluation
* Excluding designated utilities. No adjustment for inflation or valuation appeals.
Contact
Email: Business Rates General Enquiries, BusinessRatesGeneralEnquiries@gov.scot
Phone: 0300 244 4000 – Central Enquiry Unit
The Scottish Government
St Andrew's House
Regent Road
Edinburgh
EH1 3DG
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