News Archive
January 2010
Business rates are an annual cost payable on commercial property. The charge is calculated by multiplying the Rateable Value for the property by the Business Rate poundage which is fixed annually by the Scottish Government.
The rateable values of all commercial properties are re-assessed every five years with the next revaluation taking effect on 1 April 2010.
The revaluation is carried out to ensure rateable values keep pace with the changes in the property market. Whilst some rate payers may see decreases, it is likely that the majority will see large increases as the 2010 revaluation reflects the market conditions at April 2008 and therefore will not reflect the changes in the market place since that time. Whilst many rate payers in past revaluations have merely accepted their revised rateable value, appealing could produce significant savings in the rates you pay. It is vital that rate payers ensure their revised rateable value is accurate as this value will be used for the calculation of their rates for next five years.
The Scottish Government has announced the rate in the pound for 2010 as 40.7p with a poundage supplement of 0.7p for larger businesses but until the ratepayer receives their new rateable value assessment, they will not know what their actual rates payment will be. The new assessments should be issued to the rate payer early in 2010.
A right of appeal against the rateable value is permitted in accordance with statutory terms and timescales but many find dealing with their local assessor, who is responsible for deciding what your rateable value is, to be a daunting experience.
On receipt of the revaluation notice you will have until 30th September 2010 or a period of six months from receipt of your notice, whichever is the later, within which to submit an appeal in writing. Failure to lodge an appeal in the correct timescale means that the appeal will not be accepted and rates payments will be based on the Assessors’ rateable value without giving you the opportunity to negotiate.
Opportunities can arise to have the rateable value for a property reconsidered after the initial 6 month period from when the 2010 has been received but these opportunities are limited. For example, such an opportunity may be as a result a change of occupation/ownership or due to a material change of circumstances. Due to the limited extent to which future appeals can be considered, it is essential that rate payers ensure that their 2010 assessment is correct.
For help and advice on your new 2010 rating assessment or you require general advice in relation to rating matters, please contact us.
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