Scotland makes owners pay empty property rates

If you own an empty shop, office or warehouse in Scotland, you’re liable for non-domestic (business) rates even when no one is in. The Scottish Parliament records that the Bill became an Act on 7 January 2026, and official papers say the fix is backdated to 1 April 2023 so there’s no gap in the law or loss of revenue already collected. (parliament.scot)

Here’s the plain-English change. When a non-domestic property has no occupier, the owner must pay the same amount of rates that an occupier would have paid. The rating rules apply “as if” the owner were in occupation, and any reliefs or remissions that already exist can still reduce the bill. This is set out by inserting a new section (24ZA) into the Local Government (Scotland) Act 1966. (parliament.scot)

Why was this needed? In 2020, a well-meant reform accidentally removed the legal basis that let councils charge owners of empty properties. Parliament has now corrected that error and restored owner liability from 1 April 2023 so councils weren’t left with a legal gap. The Scottish Parliament’s overview and the Government’s explanatory notes both make this clear. (parliament.scot)

The timeline helps you teach or revise the process. MSPs treated this as an emergency Bill, debated the general principles on 26 November 2025, completed Stages 2 and 3 on 27 November 2025, and passed it by 84 votes to 24. It received Royal Assent on 7 January 2026 and, under the Act, comes into force the day after Royal Assent. (parliament.scot)

What this means for you as an owner. If your property is unoccupied, you’re now responsible for the rates bill as though the space were in use. You can still benefit from reliefs decided by your council or set nationally, and those decisions work in the usual way against your liability. The law change is about clarifying who pays; it doesn’t remove reliefs.

If you received a bill, reminder, or paid empty property rates at any point since 1 April 2023, this Act confirms the legal footing for those charges. Ministers also have powers to set rules for paying or repaying sums linked to enforcement during that period, so watch for guidance on any surcharges or costs added to arrears. (parliament.scot)

Quick refresher for learners: non-domestic rates are a property tax on places like shops, offices, warehouses and factories, and councils use the money to help fund local services. When those places are empty, we often call the charges “empty property rates”. That’s why clarity over who pays matters for both councils and communities. (parliament.scot)

Reliefs still matter. Councils can offer discretionary reductions and the Scottish Government sets certain national schemes each year. For 2025–26, for example, the levying regulations and separate transitional relief rules show how discounts and caps can work alongside your core bill. Your final liability depends on those reliefs. (legislation.gov.uk)

Study note for classrooms. You’ll see the phrase “with effect from 1 April 2023”: that tells us this law applies to past periods to fix an earlier drafting problem. You’ll also see that ministers can make further regulations and that these will be scrutinised and approved by MSPs before they take effect, which is a key check in the system. (parliament.scot)

Bottom line: owners, not absent occupiers, are responsible for empty property rates in Scotland, and that rule applies from 1 April 2023. Build your budget on that basis, keep records of any reliefs you claim, and look out for any regulations about repayment of enforcement costs tied to the gap years. (gov.scot)