rates and revaluations
Occupiers of commercial premises must pay business rates to the local authority in which the premises are located. Business rates are calculated by assessment of the rateable value of each property.
The exact method of calculating individual properties’ rateable values is complex but there is a relationship to the amount of rent being paid as well as any alterations made to the premises or changes in the business locality.
The rateable value of a property can be challenged by occupiers and owners if they feel it is incorrect by way of a rating appeal. It is often worthwhile for occupiers to appeal rates assessments. Recently, for example, the last round of revaluations calculated rateable values by reference to property values on 1 April 2008. Given the recessionary impact on the property sector, it is possible many rateable values fail to take account of the falls in property values since then.
Ratepayers have until 30 September 2010 to appeal the entry in the valuation roll, and, at the very least, the assessment should be scrutinised to maximise any opportunity to reduce the rates liability - in challenging economic times no opportunity to minimise costs should be overlooked.
The revaluation of all commercial and industrial properties in Scotland provides a window of opportunity for property owners to ensure they are getting a fair deal. The next revaluations will not now take place until 31 March 2015, unless there is a material change of circumstances or alterations to properties.