Following yesterday’s Scottish Budget announcement, Dunlop Heywood outlines the key updates to Non-Domestic Rates (NDR) that take effect from 1 April 2026. With the new, narrower four-month window for submitting proposals, it’s vital that businesses understand how these changes may impact their property portfolios and act quickly to secure expert guidance.
Key Changes from April 2026
Poundage Rates
The Scottish Government has reduced all poundage rates across the three existing thresholds for 2026/27:
| Rateable Value (RV) |
2025/26 |
2026/27 |
| Up to £51,000 |
49.8p |
48.1p |
| £51,001 to £100,000 |
55.4p |
53.5p |
| Over £100,000 |
56.8p |
54.8p |
These modest reductions will provide a small level of support to Scottish businesses amid ongoing cost pressures.
Retail, Hospitality & Leisure (RHL) Relief
The current relief in Scotland is for Hospitality businesses only up to £51k RV, whereas the relief from 1 April, 2026, will be for Retail Hospitality and Leisure up to an RV of £100k.
As from 1 April, RHL Relief will apply at 15% for properties on both the basic and intermediate poundage rates (previously 40% for basic rate only), and will:
- Be capped at £110,000 per business per year.
- Apply for the three-year revaluation period.
- Provide 100% relief for island and remote properties, also capped at £110,000.
While Dunlop Heywood welcomes the continued support, the reduced rate and cap mean larger operators may see limited benefit compared to the system in England, where reliefs are uncapped.
Revaluation Transitional Relief
To cushion the financial impact of revaluation, the Scottish Government will cap increases in gross bills through to 2029:
| Property Size |
2026/27 |
2027/28 |
2028/29 |
| Small (RV ≤ £20,000) |
15% |
22% |
38% |
| Medium (£20,001–£100,000) |
30% |
44% |
75% |
| Large (>£100,000) |
50% |
75% |
113% |
This new framework aims to smooth the transition for ratepayers facing sharp uplifts.
Other Announcements
- Small Business Bonus Scheme (SBBS) and Business Growth Accelerator Relief extended for three years.
- From April 2026, short-term lets must hold a valid licence to qualify for SBBS.
- Small Business Transitional Relief introduced for those losing SBBS eligibility, phasing increases over three years at 25%, 50%, and 75%.
- 100% relief for EV charging points to continue for ten years.
Take Action Now
With the revaluation taking effect from 1 April 2026 and only four months to submit detailed proposals, early action is crucial.
If you own or occupy property in Scotland, we recommend reviewing your position now to understand your exposure. Contact our Rating Team today at
info@dunlopheywood.com or ring 0161 817 4840.
