How Business Rates are calculated

How the Business Rates charge for each property is calculated

To work out the bill for your property, you should multiply the rateable value of the property by the poundage rate plus any supplement. You may then be entitled to Business Rate relief or other reductions in your bill.

Rateable Value

The assessor, who works for the Lothian Valuation Joint Board, sets the 'rateable value' for your property. The rateable value is an estimate of the yearly rent the property could earn on the open market.

All rateable values have been reviewed from 1 April 2023. This is known as a revaluation. If you think that the rateable value is too high, you can lodge a proposal with the assessor. Further details on how to make a proposal as well as the proposal and appeal process can be found on the Scottish Assessors Association (opens new window) website.

Business Rate Poundage

Each year, the Scottish Government sets the 'business rate poundage'. The business rate poundage for 2024-2025 is 49.8p for every pound of rateable value.

Any business that uses (or has the right to use) a property with a rateable value of more than £51,000 and less than or equal to £100,000 will pay an extra 4.7p on top of the rate poundage.

This means that the business will pay 54.5p in 2024-2025 for every £1 of rateable value. This is known as the Intermediate Property Rate.

Any business that uses (or has the right to use) a property with a rateable value of more than £100,000 will pay an extra 6.1p on top of the rate poundage.

This means that the business will pay 55.9p in 2024-2025 for every £1 of rateable value. This is known as the Higher Property Rate.