Rates revaluation of non-domestic properties in Scotland 2017

Revaluation - setting the poundage

16. Typically, the poundage for the year following a revaluation would be set on the basis of the total rates income for the years following the revaluation being broadly the same as it would have been in the absence of a revaluation, though recognising that some individual businesses will pay more and others less.

17. In practice this does not mean that revenues are the same in the year before and the year after a revaluation. For example, any 'revenue neutral' poundage should include an inflationary adjustment, and an adjustment to reflect that rateable value (and therefore revenue) will be reduced following valuation appeals over the revaluation cycle. As well as changes in the tax base, policy changes such as the expansion of the Small Business Bonus Scheme also have an impact on revenues.

18. For 2017-18 the lower threshold for the large business supplement was increased from over £35,000 to over £51,000. The supplement remains at 2.6p.