This item was published during the term of a previous administration that ended in April 2007
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Rating change for prescribed industries
05/11/2003
The practice of setting rateable values by Scottish
Ministers, or a formula for calculating the rateable value,
for certain industries will be abolished from April 1,
2005, it was announced today. This will return each of the
currently prescribed industries to a conventional rating
footing.
The industries concerned are:
* Electricity generation
* Electricity distribution
* Electricity transmission
* Gas
* Scottish Water
* Large Docks and Harbours
* Railways
* Train Operating Companies
Responding to a Parliamentary Question from Wendy
Alexander MSP, Minister for Finance and Public Services
Andy Kerr said:
"We intend to return the currently prescribed industries
to conventional valuation at the next non-domestic
revaluation which is due to take place on 1 April 2005.
This means that these industries will be treated in the
same way as other industries: valued by independent
Assessors and have the right to appeal their valuation. The
majority of respondents to the consultation were in favour
of this proposal.
"Our aims for non-domestic rates are stability and
certainty for business and continued harmonisation of
valuation treatment north and south of the border. As part
of this, we must be assured that the resulting valuations
for these industries are robust. If this cannot be
achieved, then we may review the position. This is a
similar position to that adopted in England and Wales."
The Executive issued a consultation paper - Non Domestic
Rates: Returning Prescribed Industries to Conventional
Valuation on 18 December 2002. The paper sought views on
the Executive's proposal to return the currently prescribed
industries to conventional valuation at the next
non-domestic revaluation on 1 April 2005. The industries
are: Electricity Generation; Electricity Distribution;
Electricity Transmission; Gas; Scottish Water; Docks and
Harbours (large); and the Railways (including the Train
Operating Companies). The announcement made today reflects
the outcome of the consultation process.
Rates are a tax on the open market rental value of
non-domestic property.
They are levied on the basis of a rateable value
multiplied by a national rate poundage (currently 47.8p)
for each non-domestic subject on the valuation roll. For
most subjects the local authority Assessor, in setting the
rateable value, acts independently of both local and
central government and any assessment made is subject to
appeal to the local Valuation Appeal Committee, Lands
Tribunal and ultimately to the Lands Valuation Appeal
Court.
For the prescribed industries rateable values, or a
formula for calculating the rateable values, are set
(prescribed), by Scottish Ministers. There is no right of
appeal. Prescribed assessment was introduced in the
post-war years when conventional valuation became
increasingly unreliable. This was because there were very
few comparable properties to which the Assessors could turn
for rental evidence and the newly nationalised industries
did not, in general, operate with a view to profit. Some
prescribed industries (telecom and waterways) were returned
to conventional valuation at the 1995 revaluation (1 April
1995).