'Business Rates' is the term commonly used for non-domestic rates which are charged on most non-domestic premises.
Non-Domestic Rates, also called Business Rates, are taxes paid on Non-Domestic properties to help pay for local council services. The Scottish Government are responsible for the policy and legislative framework but individual councils administer and collect the tax.
Non-Domestic Rates are based on the rateable value of a property, which is determined by the independent Scottish Assessors. The amount paid is calculated by multiplying the property's rateable value by a pence in the pound tax rate known as the poundage which is set annually by the Scottish Government.
The occupier(s) of a Non Domestic property normally pays Rates - usually this is the owner/occupier or leaseholder. Non-domestic properties are business properties such as shops, offices, warehouses and factories, and any other property that is not classed as domestic property. In some cases, properties may be used for both domestic and non-domestic use (for example, a shop with a flat above it), in which case both Council Tax and Business Rates will be charged.
Devolved tax legislation implemented on 1 April 2015 mean that some tenants in Scotland must, by law, submit a new tax return to Revenue Scotland every three years to ensure they have paid the correct amount of LBTT. The first time a 3 year lease review return became due was therefore 2018.
A return has to be submitted:
It is the responsibility of the tenant to submit the return – even if the lease has not changed or if no tax is due. Failure to do so will result in a penalty.
For further information please visit Land and Buildings Transaction Tax
Find out what rates reduction or relief are available to reduce your Non Domestic Rates bill. If you are eligible find out how you can apply.
In accordance with Section 235 of the Local Government (Scotland) Act 1947, as amended, owners are required to notify the council of lets of premises. If there are any changes to occupiers of non-domestic premises owned by you please complete the form below.