Business rates – time is running out to challenge the 2026 revaluation

If you run a business, you may have recently received a revaluation notice fixing the rateable value of your property until 2029. The rateable value plays a significant role in your business rates bill. If you are considering challenging the rateable value, time is short – proposals must be made by 31 July 2026.

What is revaluation and how does it work?

Business rates (or non-domestic rates to give them their formal title) are charged on most commercial properties such as offices, shops, hospitality premises, warehouses and factories. While most commercial premises will be liable for business rates, some premises such as agricultural land and buildings are exempt.  Business rates are a substantial overhead for most businesses.

Business rates are calculated using a property’s rateable value (RV), which represents an estimate of its annual rental value on the open market.

Every three years, independent Scottish Assessors review these values to ensure they reflect current market conditions. The 2026 revaluation is based on rental levels as of 1 April 2025 and applies to all non-domestic properties listed on the Valuation Roll.

Local authorities then calculate business rates bills by applying a national “poundage” (multiplier) to the updated rateable value. The poundage is set centrally and may change each year. Some businesses may also be eligible for rates relief which will reduce the bill for non-domestic rates.

Key changes in 2026

The 2026 revaluation has resulted in widespread changes to rateable values, reflecting shifts in the commercial property market. While some properties have seen increases, others have experienced reductions depending on sector and location.

Proposals and appeals

If you believe your new valuation is incorrect, it can be challenged through a formal process known as a proposal. The window for proposals runs from 1 April to 31 July 2026. During this period, ratepayers can submit a proposal to the Assessor, providing an alternative valuation supported by evidence. This process ensures that valuations remain fair and allows businesses to respond where property details or market assumptions may be inaccurate. If a proposal is not resolved satisfactorily, the matter can be appealed to the First-tier Tribunal for Scotland (Local Taxation Chamber), where an independent panel will consider the appeal.

Time is of the essence

The deadline for making a proposal to the Assessor is 31 July 2026.  After this point, you may not be able to challenge the RV of your property until the next cycle in 2029. Challenges to the RV outwith the three-year cycle are usually only available if the property has been affected by a material change of circumstances.

How we can help

If you wish to challenge the rateable value or have any questions in relation to this matter, please contact Eilidh MacEwan or your usual Anderson Strathern contact.