From 1 April 2026, the latest Valuation Roll, for non-domestic/business properties across Scotland will be accessible on the Scottish Assessors Association portal. The Valuation Roll will include the Rateable Value of each eligible property following the 2026 Rates Revaluation. Business rates bills for 2026/27 will be based on each property’s new Rateable Value (RV) and the relevant 2026/7 poundage multiplier. Many businesses will see higher business rates bills due to increased RVs and some may face business rates liability for the first time.
How can businesses reduce their liability for business rates?
1. Consider whether to challenge your Rateable Value
The window to pre-agree a revised RV with the Assessor for your council area has closed, but businesses can still submit a formal challenge, known as a “proposal,” between 1 April 2026 and 31 July 2026.
A proposal must include:
- An alternative RV
- Detailed reasoning behind the alternative RV
- Supporting evidence
Specialist advice is strongly recommended before submitting a proposal. A proposal requires detailed reasoning and strong supporting evidence to maximise the chances of success. The Assessor should consider the proposal, and there is a further opportunity to appeal if the proposal is rejected. Even if your RV has fallen after revaluation, a challenge may still be worthwhile.
2. Make sure all available business reliefs are applied
A number of reliefs for business rates will be available in 2026/27. Ratepayers should check their business rates bills carefully and apply for any reliefs not already included. Key reliefs for 2026/27 include:
General Transitional Relief:
If it applies to your premises, it should be applied automatically to your gross rates bill (ie before any other relief is applied). It limits the increase on your gross rates bill due to the revaluation for the next three years, although that limit increases each year. For example in 2026/27, for properties with a RV up to £20,000, the increase will be capped at 15%; for properties with RV between £20,001 and £100,000, the increase will be capped at 30% and for properties with RV of over £100,000, the increase will be capped at 50%.
Small Business Bonus Scheme (SBBS):
- Businesses with a single property may be eligible for 100% relief if RV is below £12,000; or partial relief on a sliding scale for premises with RV otherwise below £20,000.
- Businesses with more than one property may be eligible for 100% relief where cumulative RV for all properties is less than £12,000; or partial relief on a sliding scale if cumulative RV of all properties is £35,000 or less, and no individual property has a RV above £20,000.
Short-term let operators must hold the appropriate short-term let licence to claim this relief.
Small Business Transitional Relief:
If you previously obtained SBBS relief in 2025/6, but increased RV means your business is no longer eligible for SBBS relief in 2026, this transitional relief applies for three years. It caps any increase from the net 2025/6 rates bill, with the amount you pay increasing over the three year period. For 2026/27, the increase would be capped at 25%.
Retail, Hospitality and Leisure Relief:
A 15% relief for three years is available for retail, hospitality and leisure properties with a RV of up to £100,000. Relief is capped at £110,000 per ratepayer (ie across all eligible properties). Properties used for specified licensed hospitality and music venue purposes could receive 40% relief, subject to the same caps. This will be of particular interest to businesses operating in the hospitality sectors.
Businesses can usually apply online for appropriate reliefs through the website of the local council. In addition, the business rates poundage has reduced slightly for 2026/27, which may help offset increases in RV.
What should businesses do now?
The 2026 business rates revaluation represents a significant change. Businesses should:
- Review their business rates bill promptly
- Consider whether a RV challenge might be appropriate
- Check if any relevant reliefs have not been applied – and apply if appropriate
Given the tight deadlines, early action is important. If you would like to discuss your position, please get in touch with a member of the Thorntons Commercial Property team.
