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 1 April 2026.
General Revaluation Transitional Relief
This relief, where there is entitlement, will be automatically awarded to your non-domestic rates account; no application is required.
For the 2026 revaluation cycle, the following year-on-year cumulative limits will apply to the increases in gross charges from the position as at 31 March 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.
| Rateable value | 2026/2027 | 2027/2028 | 2028/2029 |
|---|---|---|---|
| Small (up to £20,000) | 15% | 22% | 38% |
| Medium (£20,001 to £100,000) | 30% | 44% | 75% |
| Large (over £100,000) | 50% | 75% | 113% |
Further protection has been provided for self-catering premises that hold a short-term let license. This is application-based and the following caps will apply regardless of the ratable value.
| Rateable value | 2026/2027 | 2027/2028 | 2028/2029 |
|---|---|---|---|
| Any | 15% | 15% | 15% |
Apply for Self-catering Transitional Relief at the 15% level
Small Business Transitional Relief
A Small Business Transitional Relief, capping the maximum increase in the net rates liability relative to 31 March 2026 at 25%, for 2026/2027 after any relief, has been introduced.
For 2027/2028 and 2028/2029 this will reduce the net bill increases to 50% and 75% respectively of what they would otherwise have been.
This relief is available for properties where:
- they were entitled to Small Business Bonus Scheme Relief on 31 March 2026
- were entitled to mandatory or discretionary Rural Relief on 31 March 2026 and their rateable value has increased beyond the qualifying thresholds
- they were entitled to hospitality relief on 31 March 2026
- they were entitled to Small Business Transitional Relief (under the 2023 to 2025 scheme) on 31 March 2026
In order 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 rateable value on 1 April 2026, or which had a nil rateable value on 31 March 2026 are not eligible.
Premises that require a short-term let licence to operate will only be eligible if such a licence has been obtained.
A property ceases to be eligible for relief when there is a change of ratepayer.
Apply for small business transitional relief
Transitional Relief from 2023 to 2025
Similar provisions were made following the 2023 revaluation exercise, these are summarised below.
The provisions covered:
- an automatic award based on an increase in rateable value
- a cap on the charge increase for small businesses losing entitlement to certain relief awards
- reductions for premises located on parks and being charged rates for the first time
Year-on-year Scottish 2023 Revaluation Transitional Relief caps (%)
| Rateable value | 2023/2024 | 2024/2025 | 2025/2026 |
|---|---|---|---|
| Small (up to £20,000) | 12.5% | 25.0% | 37.5% |
| Medium (£20,001 to £100,000) | 25.0% | 50.0% | 75.0% |
| Large (over £100,000) | 37.5% | 75.0% | 112.5% |
In order to be eligible for this relief, the property requires to have been shown in an entry on the valuation roll on both 31 March 2023 and 1 April 2023. Properties with a nil rateable value on 1 April 2023, or which had a nil rateable value on 31 March 2023 are not eligible.
Small Business Transitional Relief
A Small Business Transitional Relief capping the maximum increase in the net rates liability relative to 31 March 2023, after any relief, was available upon application for properties where:
- they were entitled to Small Business Bonus Scheme Relief on 31 March 2023 and/or
- were entitled to mandatory or discretionary Rural Relief on 31 March 2023 and
- are no longer entitled, or are entitled to a lesser award, on 1 April 2023
The caps were £600 for 2023, £1200 for 2024 and £1800 for 2025
Applications can still be considered for this relief.
Apply for 2023 to 2025 Small Business Transitional Relief
Parks Transitional Relief
A Parks Transitional Relief provided relief for parts of parks that existed but were exempt from valuation for non-domestic rating on 31 March 2023, and which become rateable on 1 April 2023.
This relief was available, upon application, at a rate of 67% for financial year 2023 and 33% for financial year 2024. No relief was available for financial year 2025.
A backdated application may still be accepted.
