Owners of empty shops and offices in Scotland are back on the hook for business rates. The Non‑Domestic Rates (Liability for Unoccupied Properties) (Scotland) Act 2026 received Royal Assent on 7 January 2026 and restores liability from 1 April 2023 after a 2020 amendment accidentally removed the legal basis to bill owners, according to the Scottish Parliament and Scottish Government. ([parliament.scot](Link

For Northern readers with premises north of the border - from Carlisle‑based landlords with units in Dumfries to North East retail groups trading in the Borders - the message is straightforward: budget for backdated non‑domestic rates on vacant properties unless a local relief applies. The fix is Scotland‑specific, but the cashflow hit will be felt in boardrooms across the North.

Holyrood moved at speed. Treated as emergency legislation, the Bill cleared Stage 3 on 27 November by 84–24 before proceeding to Royal Assent. Officials say the change simply aligns the law with the way councils have operated since April 2023. ([parliament.scot](Link

Public Finance Minister Ivan McKee said the legislation “brings the statute book into line … and protects revenue already collected for public services.” Without it, government papers warned of refunds of £350–£400m and an annual hit of £130–£140m from 2025–26. ([gov.scot](Link

What the Act does is simple: when a property has no occupier, the owner is treated as the ratepayer, subject to any reliefs or remissions a council chooses to grant. The Scottish Parliament’s summary notes the law reverses an error and restores the position from 1 April 2023. ([parliament.scot](Link

Relief now varies by council. Scottish Borders Council offers 50% relief for three months on empty properties, then 10% for nine months before full rates apply. Highland Council is phasing out discounts for many empty units by 2027–28. Cross‑border owners should check each council’s policy before forecasting liabilities. ([scotborders.gov.uk](Link

There is also help for bringing space back into use. For 2025–26, ministers retained a 12‑month, 100% ‘newly re‑occupied’ relief for properties with a rateable value up to £100,000 that were empty for at least six months before re‑occupation. That’s a practical route to reduce bills while getting shutters up again. ([legislation.gov.uk](Link

For councils in places like the Scottish Borders, the move protects day‑to‑day funding and removes the risk of large refunds landing mid‑year. Government assessments call the previous position an “unexpected windfall” for owners of long‑term empties that would otherwise have to be repaid. ([gov.scot](Link

Northern firms with Scottish footprints should now audit any empty units, confirm entries on the valuation roll with local Assessors, and model backdated liabilities from 1 April 2023. Where re‑letting is in train, consider timing to qualify for the re‑occupation relief and speak to councils early about any discretionary support.

Ministers have signalled ongoing engagement with COSLA and business groups as the system beds in. For border landlords and high street owners, the immediate takeaway is clear: plan for bills, not refunds - and use local reliefs to get space trading again. ([gov.scot](Link