Non-Domestic Rates - decapitalisation rates for 2023 revaluation: consultation

Introduction

The next revaluation of non-domestic property in Scotland is due to take effect from 1 April 2023 based on rental values as at 1 April 2022, the tone date. At revaluation Scottish assessors review rateable values resulting in a new valuation roll for all non-domestic properties in Scotland. While most rateable values are based on estimated annual rent, around 9% of subjects, accounting for 22% of total rateable value are derived using the contractor's basis method of valuation.

This consultation paper invites views on the prescription of the decapitalisation rate(s) to be used when subjects are valued using the contractor's basis for the next revaluation. Annex A also sets out for information three methodologies available to calculate the rate(s).

Responses to the consultation will be analysed and taken into account as Scottish Ministers consider the setting of decapitalisation rates in advance of the next revaluation.

The consultation paper applies to Scotland only.