Rates revaluation of non-domestic properties in Scotland 2017

Background

2. The revaluation took effect on 1 April 2017. The previous revaluation took effect in 2010 and, under current legislation, the next revaluation is due to take effect in 2022.

3. The purpose of revaluation is to ensure that the tax burden is distributed fairly by taking account of changes over time in market conditions and individual business circumstances. At each revaluation the Scottish Assessors, who are independent of both the Scottish Government and local authorities, assess a rateable value (RV) for each non-domestic property in Scotland (subject to statutory exemptions) taking account of the location and the type of property in question. Details of the approaches the Assessors use to calculate rateable values are published in practice notes^[1].

4. All valuations are carried out by the Assessors as at the same fixed date to ensure fairness and allow sufficient time for the Assessors to gather all the necessary evidence. For the 2017 revaluation this date, known as the 'tone date', is 1 April 2015. For the 2010 revaluation, the tone date was 1 April 2008.

5. By and large, rateable values increase in those sectors and locations where market values have increased between the revaluation tone dates. Similarly, rateable values generally fall for sectors and locations where market values have fallen over the same period.

6. Each proprietor, tenant or occupier can appeal their revaluation via independent processes. The deadline for lodging 2017 revaluation appeals (with the Assessor in the first instance) is 30 September 2017 or six months from the date of issue of the valuation notice, whichever is later.

7. A property's non-domestic rates bill is calculated by multiplying its rateable value by the poundage (the pence in the pound tax rate) together with the large business supplement where applicable (both are set annually by Scottish Ministers), subject to any relief for which it is eligible. This means that the effects of the revaluation alone are not the same as the changes in rates bills that businesses are actually liable to pay.