What are non-domestic rates?
Non-domestic rates are a tax on the occupation of non-domestic property, lands and heritages, entered on to the valuation roll by the local Assessor.
Rates are levied on properties/land/heritages that are not subject to council tax charges (although certain buildings can be subject to both charges).
The basic rates charge is calculated by multiplying the rates poundage by the rateable value.
The rates poundage is set by the Scottish Government.
The Assessor determines the rateable value for each property in the valuation roll.
For non-domestic rates to be levied, the lands and heritages must be entered in the valuation roll by the local Assessor's office.
The Assessor's duty is to determine which properties will be subject to valuation and:
- the description of the lands and heritages
- the address of the lands and heritages
- the rateable value of the lands and heritages
The Assessor will maintain the valuation roll, which will include all of the above information as well as detailing the owner/occupier/tenant's details.
The basis of the rates charges is the valuation placed upon the lands and heritages by the assessor.
It is for the assessor to determine the rateable value of each non-domestic property and advise the rating authority accordingly.
Important tax information for tenants of commercial property
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 three-year lease review return became due was therefore 2018.
A return has to be submitted:
- every three years from the effective date of the lease
- at the point where the lease is assigned
- at the point where the lease is terminated
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 Revenue Scotland Leases.
Non-domestic rates information leaflet
Further details can be found in the information leaflet.
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