All Rateable Values were updated on 1 April 2023 based on rental values prevailing at 1 April 2022 (the valuation date) and will be in force until 31 March 2026. The one-year valuation date represents one of many significant changes to the rating system going forward and raises a great challenge for Assessors to provide accurate valuations. We recommend taking action now to avoid pitfalls and ensure your 2023 rating assessments are accurate and set as low as possible.
The Scottish Budget on 15 December 2022 committed to a freeze of the poundage (or tax) rates for 2023/24 but it did increase the threshold for the Higher Property Rate from £95,000 to £100,000. The tax rates that apply from 1 April 2023 are:
- Basic Property Rate: RV £0 - £51,000 – 49.8p
- Intermediate Property Rate: RV £51,001 - £100,000 - 51.1p
- Higher Property Rate: RV £100,001 and over – 52.4p
The Scottish Budget also announced amendments to a number of rates relief schemes. In particular, the threshold rateable value for 100% Small Business Bonus relief has been reduced from £15,000 to £12,000 from 1 April 2023 and will not be available at all to certain types of property or uses.
Whether rateable values show a fall, increase or no change it is recommended to have assessments fully audited in order to ensure that rateable values and rates liability are set as low as possible. Values set from 1 April 2023 will endure for the duration of the revaluation period, set at three years (subject to any material changes of circumstances), so any successful outcome will achieve savings each year the Valuation Roll is in force. Given the radical changes to the appeal system for this revaluation which make it much more complicated to lodge a valid challenge, including a new two-staged process, it is now more important than ever that the process of challenging revaluation rating assessments begins as soon as possible.
Unless the rateable value has already been agreed with the Assessor
in writing, ratepayers will be able to lodge a valid “Proposal” (Stage
1) against their rating assessment between 1 April 2023 and the recently extended deadline of 31 August 2023 (rather than 31 July 2023)
– a shorter timeframe than the previous long-existing 6 months but
combined with far greater requirements. Effectively, a full stated case
with evidence and an alternative valuation will be required at the point
of submission. In practical terms, this means that all physical facts
obtained from a property inspection along with a detailed market
analysis will need to be carefully considered prior to the end of July/August 2023 in order to meet the requirements and ensure rateable values are
set as low as possible. If agreement is not reached at the Proposal
stage then ratepayers will be able to lodge a formal appeal (Stage 2)
with the Scottish Tribunals within strict time limits.
Please download our information flyer for more detail.
For further information or advice on Business Rates, please contact our Head of Rating, Richard Foster
E: richard.foster@fgburnett.co.uk