The 2026 revaluation will reshape the rates landscape for the next three years

“Revaluations are intended to reflect changes in the property market, not to increase the overall tax take. But in practice, the impact on individual businesses can be profound.”

Lorna Greig is Business Rates Partner at Ryden

As Scotland approaches the 2026 non-domestic rates revaluation, early evidence suggests mostly increases across the board with a mixed bag from licenced premises and offices, dependent upon geographical location. Based on rental evidence as at the Tone Date of 1 April 2025, Revaluation 2026 captures a market still adjusting to higher interest rates, altered occupier demand and persistent cost pressures. While some assets appear resilient on paper, that resilience often masks far more fragile trading conditions on the ground.

Revaluations are intended to reflect changes in the property market, not to increase the overall tax take. But in practice, the impact on individual businesses can be profound. 

Draft values already indicate substantial increases for logistics, industrial property and large-scale warehousing, reflecting sustained occupational demand and rental growth in these sectors. Licensed properties, including hotels and pubs, as well as self-catering accommodation, are also experiencing marked uplifts in many parts of the country. 

At the same time, the devolution of Empty Property Relief is resulting in rates being levied for almost all vacant premises, including land, entered in the Valuation Roll. While values for development land have often remained static and historically uncontested, the imposition of rates liabilities where none previously existed has become a significant issue for landowners and developers.

In contrast, parts of the office market remain uneven. Prime, well-located space continues to perform strongly while secondary stock lags behind. In Aberdeen for example, office values have softened in parts of the market, reflecting long-term structural change rather than short-term market volatility. 

These shifts matter because the rateable value is only one side of the equation. What businesses ultimately pay depends on what UBR’s are set by the government and the reliefs available. The Scottish Budget therefore plays a pivotal role as any measures to influence revaluation outcomes are critical to competitiveness, particularly for sectors already facing labour shortages, energy costs and reduced margins. 

It was announced last week the Basic, Intermediate and Higher Property Non-Domestic Rates in 2026‑27 would be reduced and Transitional Relief will be continued from 2026 to the next reval in 2029 to soften the blow on the most substantial RV increases. Additionally the Small Business Bonus Scheme will remain in Scotland for another three years removing 100,000 properties from rates altogether while for the duration of the three year revaluation cycle, retail, hospitality and leisure premises up to £100,000 RV will benefit from 15% Non-Domestic Rates relief, capped at £110,00 per ratepayer. I hoped that the RHL reliefs would have been greater in order to support those sectors.

One of the most under-appreciated changes facing ratepayers is the appeals process itself. Since April 2023, Scotland has operated under a fundamentally different system. The window to challenge a revaluation is short and unforgiving. A proposal must be lodged within four months, and it must contain the full evidential case from day one. Missing the deadline, or failing to include information that was available at the time, has real consequences as the right to contest the RV, except in certain limited circumstances, is lost for the entire revaluation cycle. 

Some owners of vacant development land are facing significant rates liabilities, having historically benefited from 100% empty rates relief, and therefore not lodging a proposal at the 2023 revaluation, they have no grounds to challenge until 1 April 2026. With Empty Property Relief devolved to local authorities, charges can vary dramatically from one council area to another, adding further uncertainty for landowners and developers.

The deadline for pre-agreement is 20 February 2026. Ratepayers should note that formally pre-agreeing the value prevents the submission of a formal proposal. The legal deadline for submitting Proposals against the new 2026 Rateable Values is 31 July 2026.

Against this backdrop, early and informed advice has never been more important. Rateable values are set independently by assessors, often without the benefit of full market or property-specific information. 

That is why a measured, evidence-led approach is essential. At Ryden, our rating specialists work closely with agency, lease advisory and sector teams to understand the real market context at the Tone date, inspect properties in detail and assess whether a challenge to the RV is justified. The objective is to ensure that values are fair, accurate and supported by evidence.

The 2026 revaluation will reshape the rates landscape for the next three years. Businesses that engage early, understand their exposure and take professional advice will be best placed to manage the impact. 

Lorna Greig is Business Rates Partner at Ryden