Non-Domestic Rates
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Background
1st April 2005 was the date for the last rating revaluation of all non-domestic property in Scotland, England and Wales. In Scotland the work was undertaken by the Assessor for each local authority area.
Revaluation results in the production of a new Valuation Roll which contains revised rateable values for all non-domestic properties in Scotland.
The key aims of the revaluation are maintaining stability, certainty for business and the continuation of harmonisation of valuation treatment and practice, north and south of the border. The non-domestic rate income that will be raised from businesses in Scotland after the revaluation will be the same in overall terms as before. The purpose of the Revaluation is to review rateable values for non-domestic properties in line with more up-to-date rental levels.
This creates a closer, fairer link between recent property values and the amount of rates payable by individual ratepayers.
There are four factors which contribute to the bill of every non-domestic ratepayer; the rateable value (RV) of the property ,the non-domestic rate or rate poundage, mandatory or discretionary relief , and transitional relief. Details of mandatory or discretionary relief , or transitional relief may be obtained from your local authorities finance department.
The non-domestic rate poundage is set by the government for each year, details of which will be issued with your rates bill in April. You may also be subject to additional water and sewerage rate poundage. In order to calculate the rates bill for your property, you should multiply the rateable value by the rate poundage but remember that your rates bill will be affected if your property is subject to transitional relief provisions. Details of transitional relief may be obtained from your local authorities finance department.
Rateable Values and Revaluation
The rateable value of every property is determined by the appropriate Assessor, who is independent of both local and central Government. The rateable value is the Assessor's estimate of the annual rent which that property would command on the open market. For the majority of subjects the methods used to value property have been subject to harmonisation between Scotland, England and Wales.
You will have received a Valuation Notice from your Assessor stating the rateable value for your property with effect from 1st April 2005, the date of the revaluation of all non-domestic property. This rateable value will, generally speaking, apply until the next revaluation and reflects rental levels as at 1st April 2003.
The Valuation Notice includes information on your right to appeal against the rateable value determined by the Assessor. If you consider your rateable value to be wrong you should contact your Assessor's office (click here for link to our contacts page). The final date for submission of a Revaluation appeal is the 30th September 2005. For non-revaluation appeals see Appeal Procedure.
Remember you will need to pay the rates due as billed by your local Council even if you have lodged an appeal. If your appeal is successful your Council will refund any rates overpaid with interest.
Please take care if you are considering seeking independent advice on revaluation. The Royal Institution of Chartered Surveyors (RICS), the Incorporated Society of Valuers and Auctioneers (ISVA) and the Institute of Revenues Rating and Valuation (IRRV) have jointly produced an information leaflet on combating "cowboy" business rate advisers. If you would like a copy of this leaflet, or advice on professionally recognised rating advisers, contact the RICS Helpline on 0207 222 7000.
Members of the Royal Institution of Chartered Surveyors (RICS), the Incorporated Society of Valuers and Auctioneers (ISVA) and the Institute of Revenues Rating and Valuation (IRRV) are regulated by rules of professional conduct designed to protect the public from malpractice and are required to hold adequate professional indemnity insurance.
2005 Revaluation Practice Notes
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Industrial - Comparative Principal Practice Note 1
Commercial - Shops Practice Note 40
Commercial - Offices Practice Note 41