Non-Domestic Rates Relief 2026–2029: Guidance for Self-Catering Businesses

Overview

The Scottish Government has confirmed that they will introduce sector-specific Revaluation Transitional Relief for licensed self-catering accommodation. This guidance explains what has changed, what reliefs apply specifically to self-catering, and how those reliefs interact in practice, using examples relevant to typical self-catering business models.

This guidance is based on Scottish Government regulations and ministerial correspondence and is intended to support understanding. Local authorities remain responsible for administering non-domestic rates and applying reliefs.

Legislative Update

The provisions outlined in this guidance have now been implemented through The Non-Domestic Rates (Miscellaneous Amendment) (Scotland) Regulations 2026, laid before the Scottish Parliament on 10 March 2026. The Regulations confirm both the sector-specific Revaluation Transitional Relief for licensed self-catering accommodation and the temporary hospitality relief available to eligible properties for the 2026–27 financial year.

Scottish Government Worked Examples

The Scottish Government has also prepared worked examples illustrating how the various non-domestic rates reliefs interact in practice, including Small Business Bonus Scheme relief, Small Business Transitional Relief and Revaluation Transitional Relief. These examples are expected to form part of the forthcoming Non-Domestic Rates Relief Guidance to be issued via a Local Government Finance Circular.

The current draft examples can be accessed here.

1. Revaluation Transitional Relief for Self-Catering

Self-catering accommodation is subject to a bespoke Revaluation Transitional Relief, reflecting the disproportionate impact of the 2026 revaluation on the sector.

For licensed self-catering properties experiencing the largest increases in rateable value, increases in gross non-domestic rates liabilities are capped at 15% year on year, up to the next revaluation in 2029.

Cumulative caps relative to 2025–26 are:

• 15 %in 2026–27
• 32.3 %in 2027–28
• 52.1 %in 2028–29

This replaces the standard transitional relief that applies to other property classes.

2. Evidence and Letting Requirements

Regulatory amendments also introduce:

• A time-limited opportunity between 1 April and 30 April 2026 for self-catering operators to submit evidence that letting requirements were met in 2024–25, where this was not previously provided or considered.
• From April 2026 onwards, the ability to submit evidence for any financial year, regardless of whether an in-year request has been made by the Assessor, subject to statutory deadlines.

3. How the Reliefs Work in Practice: Self-Catering Examples

The following examples are illustrative only. Actual bills will depend on local authority application of the legislation.

Example A: Small Single-Unit Self-Catering Business

• Licensed self-catering property
• One property only
• Rateable Value (RV) in 2025–26: £11,000
• RV in 2026–27: £15,000

2025–26

• Gross bill: £11,000 × 49.8p = £5,478
• Small Business Bonus Scheme (SBBS): 100 per cent
• Net bill: £0

2026–27

• Gross bill before reliefs: £15,000 × 48.1p = £7,215
• Increase exceeds 15 per cent cap, so self-catering Revaluation Transitional Relief applies
• Capped gross bill: £5,478 × 1.15 = £6,299.70

Reliefs applied after cap:

• SBBS at 25 %(RV £15,000)
• Retail, Hospitality and Leisure relief at 15 %

Combined relief: 40 per cent

• Post-relief bill: £3,779.82

As the business moved from 100 %SBBS to partial relief, Small Business Transitional Relief applies, capping the increase in the net bill at 25%.

• Final bill for 2026–27: £944.96

Example B: Medium Self-Catering Property Experiencing a Large RV Increase

• Licensed self-catering property
• One property only
• RV in 2025–26: £110,000
• RV in 2026–27: £135,000

2025–26

• Gross bill: £110,000 × 56.8p = £62,480

2026–27

• Gross bill before reliefs: £135,000 × 54.8p = £73,980
• Increase: 18.4 %

As this exceeds the self-catering cap:

• Revaluation Transitional Relief applies
• Capped bill: £62,480 × 1.15 = £71,852

No SBBS or hospitality relief applies at this RV level.

• Final bill for 2026–27: £71,852

Without the bespoke self-catering relief, the full £73,980 would have been payable.

Example C: Self-Catering Business Previously Paying No Rates

This example reflects concerns raised by MSPs during budget scrutiny.

• Licensed self-catering property
• One property only
• RV in 2025–26: £12,000 (100 per cent SBBS, bill £0)
• RV in 2026–27: £20,000.

2026–27

• Gross bill: £20,000 × 48.1p = £9,620

The increase from £0 would normally be unaffordable. However:

• Self-catering Revaluation Transitional Relief limits the gross increase
• Small Business Transitional Relief further caps the increase in the net bill.

The combined effect significantly reduces immediate liability, preventing a cliff-edge jump from zero to the full bill in one year.

4. Important Points to Note

• Transitional relief delays increases but does not remove them permanently.
• Reliefs are applied in a specific order and may interact.
• Councils administer rates and reliefs and interpret legislation locally.

6. ASSC Position

While these reliefs provide essential short-term protection, the Association of Scotland’s Self-Caterers continues to maintain that the 2026 valuation methodology applied to self-catering accommodation is structurally flawed.

The ASSC will continue working with Assessors and the Scottish Government to press for a review of the methodology and a subsequent revaluation, grounded in independent, expert evidence, to ensure fair and proportionate taxation for the sector.

You can view full ASSC FAQs Guidance in relation to Non-Domestic Rates (NDR) and the Small Business Bonus Scheme (SBBS) here.

Author of guidance: ASSC and Billy McKaig, WYM Rating, billy@wymrating.com

Date of guidance: Updated 11 March 2026

Version Number: 2

Disclaimer – Guidance Sheets are written by experienced Members of the ASSC and other experts. The information in the ‘Guidance Sheet’ is provided by the ASSC for use by Members in support of their own independent business decisions. It does not constitute advice or instruction for which the ASSC can be held liable in any way whatsoever. All Members and other readers remain responsible for the consequences of any decisions taken whether in the light of information gained from this Guidance Sheet or not.