Corporation and property tax - and business rates in Scotland

As a business in Scotland, you’ll pay corporation tax, property tax and business rates. Find out about rates and calculate how much tax you need to pay.


Corporation tax

As a business in Scotland you must pay UK corporation tax on profits you make. The current corporation tax rate is 19%. At 19%, Scotland and the rest of the UK have the lowest business tax rate of any G7 country - and joint lowest in the G20. If your business is a sole trader, partnership or limited liability partnership (LLP), you do not pay corporation tax. But you must still pay tax on your profits based on the income of the individuals involved in your business.

Land and Buildings Transaction Tax (LBTT)

If you purchase or lease a property of a certain value in Scotland, you have to pay Land and Buildings Transaction Tax (LBTT). This tax replaced the UK Stamp Duty Tax (SDLT) in Scotland from 1 April, 2015.

The LBTT rate varies between 1-4.5% for non-residential properties, depending on the value of the property. You can find out more about the LBTT and calculate your rate on the Revenue Scotland website.

Value Added Tax (VAT)

As a business in Scotland, you must register with HM Revenue & Customs (HMRC) and pay the sales tax on the goods and services you provide.

Business rates

Business rates are a tax on business property to help pay for services provided by the local council. These ‘non-domestic rates’ are based on the property and generally don't reflect the turnover or profits of your business. If you're the owner, tenant or occupier of a non-domestic building for business, you will need to pay a business rate.

Get advice

You should seek specialist advice from an accountant or solicitor to ensure you are paying the correct amount for taxes and business rates.