Vape shops in Scotland to be excluded from business rates relief

Business rates – officially called non-domestic rates in Scotland – are set by the Scottish government, though they are collected by councils to fund local services.

The levy is charged on business properties such as shops, offices, factories and warehouses, with the rate based on their rental value.

As of 1 April, new rateable values were introduced for all 260,000 rated non-domestic properties in Scotland, leading to a tax hike for many firms.

In the 2026-27 Budget, the Scottish government cut business rates in a bid to cushion the effect of revaluations.

Other transitional reliefs were also introduced, including an extension of the Small Business Bonus Scheme, which allows some firms to get up to 100% tax relief.

Payday lending firms, car parks, betting shops and some other businesses are already excluded such reliefs, but the government says it will also ban vape shops from reliefs as of 1 April 2027.