Introduction
NON-DOMESTIC RATES

Non-Domestic Rates are a form of property tax levied against the vast majority of commercial (or non-domestic) lands & heritages throughout Scotland. The amount payable is determined by multiplying the Rateable Value of the lands & heritage by the prevailing poundage rate; for example, a shop with a Rateable Value of £25,000 while the poundage is set at £0.498 will have a liability of £12,450 per annum before any relief schemes are considered.

The Rateable Value is calculated by the local Assessor and is an estimate of the open market rental value of the lands & heritages at a statutorily defined fixed point in time. All Rateable Values are shown on the Valuation Roll which is a publicly available record. The poundage rate is set by the Scottish Government and is considered annually as part of the national budget.

Under the current system Rateable Values are reset every three years as part of the general Revaluation. The current 2023 Valuation Roll came into effect on 1 April 2023 with Rateable Values based on market evidence from around 1 April 2022. The 2023 Valuation Roll is due to close on 31 March 2026 to be replaced by the 2026 Valuation Roll which will contain Rateable Values based on market evidence form around 1 April 2025.

CHALLENGING A RATEABLE VALUE

Parties with an interest in a Valuation Roll entry may challenge the corresponding Rateable Value via formal proposals that must be submitted to the local Assessor. Following a Revaluation interested parties have four months between 1 April and 31 July in which to lodge a formal proposal; this deadline is strictly enforced.

The format & content of any proposal is enforced by legislation, and it is imperative that all legally required information, opinions, evidence and statements of valuation are correctly submitted as failure to comply will result in a proposal being considered invalid.

CHALLENGING FOR REVALUATION 2026

One area of concern is the introduction of legislation that will require Assessors to increase Rateable Values in cases where a proposal has been lodged and the Rateable Value is found to be too low. It is therefore crucial that proposals are thoroughly considered before being submitted as it may not always be in the Ratepayers interest to lodge a challenge.

Following Revaluation 2023 the Scottish Government agreed to extend the window in which proposals could be lodge by one month to five to allow for teething trouble with the new system. All indications are that this will not be repeated in 2026 and the four-month window will be strictly enforced.

TIMELINE FOR REVALUATION 2026

1 APRIL 2025 - ‘Tone Date’ for RV26, this being the date from around which Assessors must base their valuations.

30 NOVEMBER 2025 - Draft Valuation Notices issued to all interested parties, this will illustrate the 2026 Rateable Value for all non-domestic properties across Scotland; this is subject to change prior to going live on 1 April 2026.

13 JANUARY 2026 - Scottish Budget announced. This will include detail on poundage rates and Business Rates relief schemes that may be in place for the forthcoming financial year.

1 APRIL 2026 - The 2026 Valuation Roll comes into force, replacing the 2023 Valuation Roll.

31 JULY 2026 - Last date to lodge a formal Revaluation Proposal against an entry on the 2026 Valuation Roll

WHAT GRAHAM + SIBBALD CAN DO TO HELP
Initial Investigation
Graham + Sibbald can carry out a high-level desk top investigation of any 2026 Valuation Roll entry in the first instance following which a recommendation can be made on whether or not it is in the Ratepayer’s interest to lodge a formal proposal.

Formal Proposal
If it is recommended that a formal proposal is lodged, Graham + Sibblad can prepare a full proposal package for submission to the local Assessor – this will be a detailed document containing opinions on value, grounds for lodging a challenge, supporting valuation evidence and a statement on our alternative Rateable Value.

As part of the formal proposal, we will undertake discussions, negotiations and exchanges of paperwork with the Assessor’s office as required over the course of the proposal case.

Any reduction in Rateable Value achieved via a 2026 Revaluation Proposal would be effective from 1 April 2026.

WHAT RATEPAYERS CAN DO
Look out for Draft Notice
Interested parties should look out for draft Valuation Notices which are due to be issued on 30 November. These will state the Rateable Value of the subject property for the 2026 Valuation Roll. Whilst these can change upon issue of the final Valuation Roll on 1 April 2026 they are a reliable indicator of the Rateable Value for the next three years.

Contact Graham + Sibbald
With the window for lodging formal proposals extremely tight and the need for in depth consideration of proposals imperative to avoid the risk of increased Rateable Values we recommend that action is taken as early as possible. Graham + Sibbald are 

preparing to turn our attention to Revaluation 2026 enquiries and proposals as soon as the Draft Valuation Notices are issued. We would encourage anyone who wishes to have their Valuation Roll entry investigated and seek recommendation on whether or not a proposal is in their best interest to contact us at as soon as possible.

Provision of the following information will allow us to streamline our initial investigations and provide interested parties with a prompt recommendation on how to proceed:

• Copy of Valuation Notice(s)
• Latest Business Rates bill(s)
• Any floor plans of subject property
• Any photos of subject property
• Confirmation of any recent physical alterations carried out at subject property

Please feel free to contact any member of the Graham + Sibbald Rating Team shown below. Time is very much of the essence under the new system & legislation therefore it is in Ratepayer’s interests to contact us as soon as possible.

Any Questions?

Tim Bunker - Edinburgh
T: 07803 896 935
E: tim.bunker@g-s.co.uk

Stuart Blyth - Edinburgh
T: 07789 557 681
E: stuart.blyth@g-s.co.uk

Calum Campbell - Glasgow
T: 0141 332 1194
E: calum.campbell@g-s.co.uk