- Review of non-domestic rates revaluation announced
Vape shops are set to lose discounts from their bills as part of
a commitment to reform the non-domestic rates system.
In a statement to the Scottish Parliament, Deputy First Minister
announced plans to remove
rate relief for vape shops from 1 April 2027.
The Scottish Government will also appoint an independent panel to
examine the outcome of the 2026 non-domestic property revaluation
following reports of inconsistent valuations.
The panel will assess whether there are any anomalies that exist
within the revaluation and report within three months of being
appointed.
The Deputy First Minister said:
The Scottish Government is absolutely determined to drive
economic growth, and enable businesses to invest, grow, and
create jobs. A key part of making that economic growth a reality
will be getting the framework right on Non-Domestic Rates.
Ministers have heard the concerns raised by businesses and trade
bodies about apparent anomalies within the 2026 revaluation, and
that is why we are taking urgent action.
This includes taking action to ensure vape shops are contributing
to the high street, recognising the growth of the sector in
recent years and ensuring rates relief aligns with our public
health commitments.
We will also examine comprehensive improvements and reforms that
can be made to the non-domestic rates system, seeking independent
advice and working closely with business. This will ensure that
the system works overall and provides the clarity, the
confidence, the incentive and the transparency businesses need.
Background
Non-domestic rates (NDR), or business rates, are a property tax
charged on the occupiers of non-domestic properties in Scotland.
They are calculated by taking a property's rateable value (based
broadly on its rental value) and multiplying it by a nationally
set tax rate (poundage), with councils applying any relevant
reliefs and collecting the final bill.
Payday lending, car parks, betting shops, properties requiring a
short-term let licence to operate but which have not obtained
one, and shootings (with exceptions) are already excluded from
eligibility for non-domestic rates Small Business Bonus Scheme
relief and Fresh Start relief.
Arrangements will be made shortly for appointments to the panel.
The outcome of the review will be presented to Parliament.
Non-domestic rates revaluation
2026 statistics - gov.scot
