Scottish Budget 2025-26: Non Domestic Rates Update

The Scottish Government announced its budget for 2025-26 on 4 December 2024, including the following updates to business rates expected to take effect from 1 April 2025:

• The Basic Property Rate for properties with RV up to £51,000 will be frozen at 49.8p.
• RV’s over £51,001 and £100,000 will be increased to 55.4p and 56.8p respectively.
• Hospitality premises located on islands and in designated remote areas will continue to receive 100% relief, capped at £110,000 per business.
• 40% relief will apply to hospitality properties (including music venues with a capacity of up to 1,500) with RV up to £51,000, also capped at £110,000 per business.
• The Small Business Bonus Scheme and Business Growth Accelerator and Transitional Relief will be maintained
• Retail, Hospitality and Leisure relief previously available from 1 April 2020 to 30 June 2022 to mitigate the financial impact of COVID-19, will close for applications on 31 March 2025.

Lorna Greig, Partner and Head of Business Rates at Ryden commented:

“Whilst the continued freeze for small businesses and the retention of relief schemes are positive steps, the limited scope for the hospitality sector presents significant challenges once again.

“It is disappointing to see that the full relief for hospitality businesses on the islands has not been extended across the country in an industry still struggling with operational costs and the lingering effects of the pandemic.”

Ryden’s business rates experts can help navigate the complexities of business rates by providing advice and support, including identifying potential reliefs and exemptions, appealing assessments or developing a business rates mitigation strategy.

For further information, please click here.