Latest Scottish Business Rates Revaluation Developments

23rd January 2026

Every few years, everyone with a non-domestic (commercial) property in Scotland — shops, offices, pubs, warehouses, farms, etc. gets a new rateable value (RV) assigned by the Scottish Assessors.

This valuation reflects what the property would rent for in the open market at a specific point in time (the "tone date") and is then used to calculate the business rates bill.

New revaluation date: 1 April 2026 (based on rental values as of 1 April 2025)

Draft valuation notices were issued at the end of November 2025 and final values go live in March 2026 ahead of billing for 2026/27.

Draft Results: Property Values Up Sharply

The draft 2026 valuation roll suggests significant rises in rateable values overall — meaning many businesses will face higher underlying liabilities before reliefs or transitional protections are applied:

Across Scotland, total rateable value has risen by roughly 12% compared to the old roll.

Many individual businesses — especially in hospitality and retail — have seen much larger proposed RV increases, with some firms facing 100%+ jumps.

This is because rental evidence has moved significantly since the last revaluation (with inflation and commercial property market changes feeding through).

Impact on Bills: Reliefs and Transitional Protection

To manage this shift, the Scottish Government has re-shaped the business rates framework starting April 2026:

1. Rate Poundage Adjustments

The Government has cut the basic rates (poundage) for 2026/27 slightly — lowering the amount charged per £ of rateable value — to help offset some of the RV rises.

2. Transitional Relief for Revaluation

A new Revaluation Transitional Relief scheme will cushion the worst impacts on bills between 2026 and 2029:

Increases in gross business rates liabilities due to revaluation will be capped in each of the next three years, with limits rising over time.

This means businesses won't immediately pay the full increase from new valuation figures.

3. Sector-Specific Reliefs

To support key sectors:

Retail, Hospitality & Leisure (RHL) Relief: A 15% discount on business rates bills (capped at £110,000 per business per year) will be in place for three years for qualifying businesses.

This replaces a 40% relief (for smaller properties) that existed before, meaning many businesses will see less help even with the new discounted rates.

The Small Business Bonus Scheme and other existing reliefs (e.g., Business Growth Accelerator) continue for the revaluation period.

Business Reaction: Concern and Criticism

There has been significant industry pushback, particularly from business groups:

Scottish Chambers of Commerce warns that the scale and speed of rate rises coming from the revaluation could “push businesses to the brink”.

Hospitality bodies say the methodology is “disconnected from trading reality,” with some pubs, restaurants, and similar businesses facing increases of hundreds of percentage points before relief.

Rural and diversified businesses (e.g., farm shops, visitor attractions) argue that they too are disproportionately affected by higher valuations.

Bottom Line: What This Means for Scottish Businesses

From April 1 2026

Every commercial property in Scotland gets a new valuation that could change its business rates bill — often substantially.

The Government has lowered rates and introduced transitional and sector reliefs to soften the blow.

Many businesses will still see higher bills in real terms because the increase in property values outweighs the relief and cuts.

Understanding your actual impact

Once final values are issued, businesses should review draft and final valuation notices carefully.

It’s also vital to explore available reliefs and transitional protections — particularly if your rateable value has jumped sharply.