Coming into force on 1st April 2017, the rates revaluation is now nine months away. Assessors are nearing completion of their new assessments, which are due to be delivered to the Scottish Government in October. Despite that time-scale, ratepayers may not receive notification of their revised rates assessments until February/ March 2017, alongside their rates bills!
Significant announcements are yet awaited on areas such as;
- Decapitalisation rate for contractors based assessments (despite being announced for all other parts of the UK).
- Transitional relief.
- The Scottish business rates review.
Although ratepayers in England and Wales will be able to access their 2017 assessments on-line from October, this is not being proposed in Scotland, despite the data being available to publish.
We will be ensuring that all our clients are updated as soon as any major announcements are made, including notification of any rateable values and 2017 rates charges.
Water Charges – Empty Properties
Following the recent reduction in vacant rates relief for empty property, the Scottish Government has announced that the current exemption from water rates for vacant property will cease entirely from 1st April 2017.
A consultation has also been launched on the valuation base for water charges. Current water charges are based on 1995 Revaluation rateable values (RVs). For new or altered properties, current RVs are used instead of 1995 RVs, which can result in inconsistent and inequitable charging. We hope the result of the consultation will be to update all basis of charging to current RVs.
Land Reform Act
Provisions of the Act have now come into force that bring shootings and deerstalking back into conventional business rates from 1st April 2017. Both had previously been exempt from rates. Whilst a political move, this is one that may result in very little rates income as many of the new entries may be modest RVs and exempt from rates payments under the small business relief scheme.
If you wish to know the potential impact of the Revaluation on your business, or further information on the issues raised in this newsletter, then please contact us for further advice.
1st April 2015 – Valuation Date for 2017 Rating Revaluation
Summer 2015 – Summer 2016 – Assessors ingathering rental information and formulating schemes of valuation
Autumn 2016 – Issue of draft rateable values to Scottish Government
Autumn 2016 – publication of draft rateable values on SAA website??
February 2017 – confirmation of rateable values, business rate poundage and relevant relief schemes (including transitional relief)
1st April 2017 – 2017 – Rating Revaluation Comes into force
30th September 2017 – Deadline for lodging of appeals for 2017 Rating Revaluation (deadline may be subject to review)
We welcome the opportunity to mitigate your rates liability. For further information, or simply to discuss the above in greater detail please contact:
The Merchants’ Hall
22 Hanover Street
Edinburgh EH2 2EP