A Revaluation is a regular, until recently 5 yearly, reassessment of all non- domestic properties. It applies to all land and any buildings on those lands unless the class of property is expressly exempted by law. The most common exemptions are Agricultural Lands and Domestic properties; the latter group is instead liable to Council Tax.
The previous Revaluation was in 2017 and the Revaluation proposed for 2022 was postponed in UK until April 2023 UK and Scottish Government in 2020 due to Covid-19. Revaluation results in the production of a new new business rates valuations for all non-domestic properties and will probably result in a change to your rates bill.
Following a Revaluation, business rates valuations will generally remain unchanged until the next Revaluation; unless the property is altered or other changes take place.
Assessors are responsible for the valuation of the various properties in Scotland. The collection of Rates and the administration of exemptions and relief is the responsibility of the Director of Finance within each Council.
The Barclay Review of Business Rates in Scotland was published in August 2017 with a number of recommendations plus a timeline for implementation of the new proposals.
The main recommendations of the Review have been divided into four main sections as follows:
- Efficiency and Transparency of the business rates system;
- Additional Support for ratepayers;
- Proposals to support Growth in the Scottish economy; and
- Tackling the issue of Tax Avoidance in order to ensure fairness
One of the main recommendations is for a three yearly revaluation cycle with a tone date one year before. Historically, there has been a five yearly cycle with a tone date two years prior. This new revaluation cycle would take effect from 1st April 2023, with the valuation date (The Tone Date) being 1st April 2022. It is intended this would help to provide a business rates system which more accurately reflects, upwards and downwards, fluctuations in the non-domestic property market.