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Non Domestic Rates

Background

1st April 2017 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.

Key Aims and Purpose

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 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.

The Rates Bill

There are four factors which make up your rates bill; the rateable value, set by the local Assessor, the rate poundage, set by the Scottish Government, additional water and sewerage charges, set by Scottish Water and finally any mandatory or discretionary relief which may be obtained from your local authority’s 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.

Although the Assessor is an independent statutory official, she works through the Scottish Assessors’ Association (SAA) to ensure, amongst other things, consistency of approach and practice in the administration of the Valuation Acts. One way of ensuring this is by working together to produce valuation guidance reports, known as "Practice Notes". The full list of Practice Notes prepared by Standing Committees and approved by the SAA for the 2017 rating revaluation dealing with the valuation of Commercial, Industrial, Miscellaneous and Public Buildings subjects, as well as giving guidance on Basic Principles of valuation, can be found on the SAA website by clicking here. In addition to the SAA Practice Notes the Ayrshire Assessor has developed the following “Local” Practice Notes to assist her staff in the valuation of particular classes of property. These can be viewed by clicking on the appropriate documents below:

You will have received a Valuation Notice from your Assessor stating the rateable value for your property with effect from 1st April 2017, 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 2015.

Your right to appeal

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. (See our Contacts page). The final date for submission of a Revaluation appeal was the 30th September 2017. 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.

Professional advice

Please take care if you are considering seeking independent advice on revaluation.

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.