This has implications for Non-Domestic Rates in Scotland with effect from 1 April 2019, as confirmed by Finance Secretary, Derek Mackay on 12 December 2018.

Firstly, 90% of properties in Scotland will be liable for a lower poundage rate than the rest of the UK; the government is capping increases in business rates below inflation at 2.1%. The proposed Uniform Business Rate (UBR) for 2019-20 will be £0.49 (up from £0.48 in 2018-19) with the 2.6p Large Property Supplement for Rateable Values above £51,000 being maintained.

In respect of Transitional Relief (TR), this will be continued for a further 3 years for the hospitality industry throughout Scotland and offices in the Aberdeen City and Aberdeenshire area. This is clearly good news for ratepayers in those sectors.

Further welcome news is the government has ruled out the introduction of an out-of-town levy for the time being.

In last year’s budget, a number of recommendations from The Barclay review were implemented and Mr Mackay confirmed they wish to continue with policies from that Review. In particular, the government are committed to three yearly revaluations commencing 1 April 2022. Furthermore, for those ratepayers who are contemplating carrying our work to their premises, the ‘New and Improved Property Relief’ scheme will continue in 2019-20.

Please do contact our team to discuss how these proposed changes may affect your business and how we may be able to help.