Non Domestic Rates

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.

Commercial lease tenants - Key information on Land and Buildings Transaction Tax (LBTT)

Depending on your lease terms, you may need to submit a tax return and pay Land and Buildings Transaction Tax (LBTT) to Revenue Scotland. Leases that come under LBTT also come with additional ongoing responsibilities for the tenant.

You must submit an LBTT return within 30 days of the lease's effective date (i.e. usually the date of entry/when the lease starts). Your agent or solicitor can submit this for you.

If submitting it yourself, contact Revenue Scotland to request a paper form.

Lease reviews - Tenant ongoing responsibilities

As long as you are the tenant, it is your responsibility to submit a Lease Review Return to Revenue Scotland within 30 days of the following:

• Every three years - Even if nothing has changed or no tax is due, you must submit a return every third anniversary (i.e. year 3, year 6, year 9 etc.) of the lease's effective date (i.e. usually the date of entry/when the lease starts).
• The date you assign (transfer) the lease to someone else - Once this is submitted, the new tenant will take over future returns.
• The date you terminate (end) the lease - A final return must be submitted when the lease is terminated.

You, as the tenant, can submit it online via the Revenue Scotland portal.

Failure to comply with this responsibility will result in a penalty.

For full details on ongoing lease responsibilities, visit Revenue Scotland's website.

Non Domestic Rates - Owner/Occupier

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.

Owner/Occupier Notification

Non Domestic Rates - Relief and Reductions

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.