Proposals and appeals against non-domestic revaluations

Non-domestic rates (sometimes called business rates) are a property tax, charged on non-domestic properties. The amount that each ratepayer will pay is proportional to the determined value of their property, known as the rateable value, and may be reduced by reliefs.

The rateable value broadly corresponds to the notional rental value the property could achieve in the open market, if it were vacant and available to let, taking account of the type and nature of the property.

Rateable values are initially determined once a property comes into existence or occupancy, and are redetermined at revaluations. Rateable values are determined by the 14 Scottish Assessors, who are independent of both Scottish and local government. 

Rateable values are only one factor in the amount actually paid by a ratepayer. These are multiplied by the applicable rate to calculate the gross bill, and can be reduced by reliefs. Non-domestic rates bills are calculated and issued by local councils.

The main purpose of revaluations is to update the non-domestic rates tax base, to ensure that rateable values reflect the rental market. Rateable values are based on the notional rental value of each property. Therefore, if the rents for a certain type of property have increased, so will their rateable values. Through revaluations, the non-domestic rates tax burden is redistributed to reflect changes in market values.

The Scottish Assessors Association (SAA) have developed practice notes, which are used to help assessors determine the rateable value of properties. A summary valuation for a property may also be found for some properties by searching on the SAA website.

The 2023 revaluation took effect on 1 April 2023, with reference to rental values and market conditions as at the tone date of 1 April 2022. Recent revaluations took effect on 1 April 2017, when the tone date was 1 April 2015, and on 1 April 2010, when the tone date was 1 April 2008.

Following revaluations, ratepayers can make proposals and/or appeals against the rateable value of their properties, with prescribed information to be provided and within prescribed timescales.

A statistical report about the 2023 Revaluation was published on 18 May 2023.

Proposals and appeals against the 2023 Revaluation

From 1 April 2023, a new two-stage process was introduced, with proposals and appeals.

A proposal against the valuation of a property made on or after 1 April 2023 can be lodged by 31 August 2023 or four months after the valuation notice is sent, if this is later than 31 August 2023.

Proposals are made to the Assessor, who may decide to:

• change the valuation in line with the proposal or a subsequent agreement that the proposer reached with them,
• change the valuation in a different way that could increase or decrease the rateable value, or
• not change the valuation.

Proposals cannot be lodged if the valuation for a property is in accordance with an agreement reached with the Assessor prior to the (re)valuation.

Ratepayers may lodge an appeal against the proposal outcome in certain cases, such as when the valuation of the property was not changed, or when it was not changed in line with the proposal or a subsequent agreement.

Appeals are lodged with the Local Taxation Chamber of the First-tier Tribunal for Scotland.

Rateable values can both increase and decrease at both the proposal and appeal stages. More information about submitting proposals and appeals against the 2023 revaluation can be found on mygov.scot.

Appeals against the 2010 and 2017 Revaluations

There was no proposal stage before 1 April 2023. Ratepayers could make appeals against previous revaluations by the later of 31 July in the revaluation year, or six months after the valuation notice was issued. Other timescales were in place where a property became newly occupied, or there was a material change of circumstance, or an alleged error in the valuation.

Prior to 1 April 2023, appeals were heard by Valuation Appeal Committees, or, if referred, by the Lands Tribunal for Scotland. Any appeals remaining unresolved as at 1 April 2023 were automatically transferred to the Scottish Tribunals.

Rateable value could only decrease or remain unchanged following appeals made up to 31 March 2023.