Business rates
2023-24 Non Domestic Rates - changes from April 2023
Rates Poundage
The Scottish Government has set the 2023-24 non domestic rates poundage at 49.8p with the following supplements for larger properties.
Rateable values up to and including £51,000 - 49.8p
Rateable values between £51,001 and £100,000 - supplement of 1.3p - 51.1p
Rateable values greater than £100,001 - supplement of 2.6 p - 52.4p
Revaluation
2023 is a revaluation year and the majority of rateable values will change as a result of the revaluation. The Assessor is responsible for revaluation and if you have any enquiries regarding this matter please email: assessor@highland.gov.uk
Your 2023-24 rates bill is calculated using the 1 April 2023 rateable value multiplied by the appropriate poundage (as above).
Reliefs and exemptions
Small Business Bonus Scheme (SBBS)
Small Business Bonus is being reformed from 1 April 2023. 100% SBBS relief will continue to be available for single properties with a rateable value up to £12,000 (previously £15,000). The upper rateable value threshold for individual properties to qualify for SBBS relief is increasing from £18,000 to £20,000. Relief will taper from 100% to 25% for properties with rateable values between £12,001 and £15,000; and from 25% to 0% for properties with rateable values between £15,001 and £20,000. The cumulative threshold of £35,000 (total rateable value) is remaining. Car parks, car spaces, advertisements and betting shops will be excluded from eligibility from 1 April 2023.
A review of all Small Business Bonus entitlements will take place during 2023/24. Details will be included with your 2023/24 annual bill.
Small Business Bonus Transitional Relief Scheme and Rural Relief Transitional Relief Scheme
From 1 April 2023 these schemes will cap the increase in gross liability as a result of the changes in SBBS regulations and or a reduction in relief entitlement due to a change in rateable value because of revaluation. The maximum increase in rates liability relative to 31 March 2023 will be capped at £600 in 2023-24, rising to £1,200 in 2024-25 and £1,800 in 2025-26.
Revaluation Transitional Relief
A revaluation transitional relief scheme is being introduced to cap the increase in gross rates liability (in cash terms) due to revaluation. The caps in gross liability in 2023-24 will be 12.5% for small properties, 25% for medium properties and 37.5% for large properties. The scheme runs for 3 years from 1 April 2023 and details of the year-on-year caps (%) are shown in the table below:
| Rateable Value | 2023-24 | 2024-25 | 2025-26 |
|
Small (up to £20,000) |
12.5% | 25% | 37.5% |
|
Medium (£20,001 to £100,000) |
25% | 50% | 75% |
| Large (over £100,000) | 37.5% | 75% |
112.5% |
Nursery Relief
This relief was due to end on 30 June 2023 but will now be extended indefinitely.
Fresh start Relief
The qualifying threshold for this relief will increase from £95,000 to £100,000.
Empty property relief
From 1 April 2023 the Scottish Government devolved responsibility for Empty Property Relief to all Scottish local authorities. From 1 April 2023, there are presently no changes to the current qualifying properties or qualifying criteria for unoccupied relief in The Highland Council area. A review of qualifying property and criteria will take place in due course.
Retail Hospitality and Leisure Relief (RHL)
The Scottish Government has advised that RHL relief will not continue into 2023-24. RHL can still be applied for in relation to 2021-22 and 2022-23.
Business Growth Accelerator
Properties in receipt of Business Growth Accelerator on 31 March 2023 will continue to be eligible for an equivalent percentage of relief on the 1 April 2023 rateable value for the remaining duration of the relief entitlement.
Enterprise relief
This relief will be extended by one year to 31 March 2024.
Further details of all these changes will be available with your annual rates bill.