Rates revaluation of non-domestic properties in Scotland 2017

Annex - Factors affecting data analysis of the 2017 revaluation

Splits and mergers

1. Over time, the number of properties on the valuation roll changes as properties come into existence or occupation, are split or merged, or are demolished. As a result of this, not every current entry in the roll can be directly 'matched' to a pre-revaluation entry, and vice versa. Where possible, aggregate data has been used for the analysis in this publication to avoid in so far as is possible any distortionary effect related to splits or mergers. However for certain analysis (notably table 4) only properties that can be matched on a like for like basis were used. The matched data set contains slightly fewer properties for this reason.

2. There were more splits and mergers at the 2017 revaluation than at prior revaluations due to a recent Supreme Court judgment^[6]. Following this ruling, the Assessors split a number of entries in the old valuation roll into two or more entries with effect from 1 April 2017. This has implications for both the RVs and the rates liabilities, and needs borne in mind when making comparisons before and after revaluation; for example many multi-storey office premises and related car parking have been split into separate rateable properties.

Designated utilities

3. In many of the tables in previous sections, the 'designated utilities' on the valuation roll have been presented separately to the rest of the tax base.

4. These utilities are set out in legislation^[7], each having a designated Assessor and rating authority to value and bill in respect of each property at a national level. As such, they are not treated the same way as other rateable properties.

5. This small number of entries in the valuation roll represents a relatively large amount of RV, which has faced a different revaluation effect from the remainder of the tax base.