Countdown to business rates appeal deadline in Scotland
Scottish landlords and businesses are being warned not to miss the boat to secure fair rateable values, as the appeals deadline looms at the end of September.
Rating experts at Colliers International, the global commercial real estate agency and consultancy, say that following a revaluation that saw double-digit rate hikes in some areas and sectors, it has never been more important for landlords and tenants in Scotland to ensure that the rateable value placed on their property is accurate from the outset.
Louise Daly, associate director of Rating at Colliers International in Scotland, said: “Given the extremely restrictive nature of mid-valuation roll appeals in Scotland, ratepayers have a relatively short opportunity to submit a revaluation appeal and dispute any or all aspects of the valuation that were set from 1st April 2017. They now have less than a month remaining to do so.
“Ratepayers can of course submit their own revaluation appeals within the deadline of 30th September 2017, or they can seek representation to ensure that they are not put at any disadvantage given the complexities of complying with the current appeal system.”
John Webber, Head of Rating at Colliers, added: “Reform of some aspects of the business rates system in Scotland is expected to be soon, including a separate move from Valuation Appeal Committees to a Tribunal system. Ratepayers, therefore, need to stay alert to changes as they happen and ensure that their interests are protected. Lodging appeals now will ensure that any potential validity issues can be resolved- but only just in time. Businesses really cannot afford to delay further.”
Following the Rating Revaluation of 1st April 2017 many businesses have suffered large increases in their business rates. Unlike the rest of the UK, they were given just six months to appeal.
Moreover, despite the recent recommendations made by the Barclay Review panel to move towards a three-yearly revaluation cycle with a ‘tone date’ one year prior to the beginning of the revaluation, nothing has been agreed by the Government to date. Colliers believes that businesses are likely to face another five-yearly valuation cycle at present.
The situation in Scotland is even more precarious because the Barclay Review panel disappointingly did not make any recommendations in respect of the Material Change of Circumstance (MCC) issue north of the border. In Scotland MCC appeals are extremely limited in their scope – a result of High Court decisions made during the period of the 2010 Scottish revaluation cycle. This has made the present appeal system in Scotland much less competitive for ratepayers than in England.
Mr Webber concluded: “Even three-yearly valuation cycles would not go far enough to address specific, localised issues, which in England would have scope for reduction through an MCC appeal. Businesses therefore must not delay. Missing the boat now would be both lengthy and costly.”