Non-domestic rates on empty properties - Bill to amend existing legislation

24th November 2025

Legislation to correct an error in law for owners of unoccupied properties' liability to pay non-domestic rates has been published.

The Non-Domestic Rates (Scotland) Act 2020 devolved to councils the power to provide discounts to owners of unoccupied properties from 1 April 2023.

However a legislative error has been identified in amendments made to that Act during its Parliamentary procedure, meaning there has been no legal basis to levy non-domestic rates on unoccupied properties since 1 April 2023.

If passed, the Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Bill will apply the necessary changes retrospectively for all levies charged since April 2023.

Subject to the parliamentary timetable, a vote could be held on Thursday.

Public Finance Minister Ivan McKee said:

"This Bill will bring the statute book into line with Parliament’s intention to devolve Empty Property Relief to local authorities, and with the way the non-domestic rates system has been operating in practice since 1 April 2023.

“There will be no change to rates bills as a result of this legislation and the Bill will not introduce any additional new costs to businesses or individuals compared to the Scottish Parliament’s original intended policy."

Non-Domestic Rates (Liability for Unoccupied Properties) (Scotland) Bill

The Bill will enable charging of non-domestic rates on owners of unoccupied non-domestic property, subject to any reliefs that local authorities may choose to put in place, backdated until 1 April 2023. This was the intended effect of the Non-Domestic Rates (Scotland) Act 2020, providing greater fiscal powers to councils.

While section 19(2) of the 2020 Act repealed section 24 of the Local Government (Scotland) Act 1966 which stated no rates were payable for unoccupied non-domestic property, the effect of section 16 (1) of the Valuation and Rating (Scotland) Act 1956, which sets out that rates shall by payable by occupiers only, was not taken into account. Without fresh legislation to make the position regarding empty properties clear, rates paid by owners of unoccupied property since 1 April 2023 would need to be refunded. This Bill seeks to protect revenue already collected for public services in line with the Scottish Parliament’s vote in 2020.