What is Revaluation 2010?
Every five years all non-domestic (business) properties are assessed, and given new rateable values. 2010 revaluation came into effect on 1 April 2010 and all business properties had their rateable values reassessed based on a valuation (tone) date of 1 April 2008.
Why is this done?
The key purpose of revaluation is to update rateable values of non-domestic (business) properties to reflect more up-to-date rental levels. This provides for a closer, fairer link between property values and the amount of rates paid by individual ratepayers.
What will this mean for my business?
Any property your business uses/occupies will have a new rateable value.
How is this new rateable value determined?
Any reduction or increase in rateable value will be determined by the Assessor's independent assessment of what your property (ies) would fetch in rent if available on the open market on 1 April 2008.
Is Revaluation just an excuse to tax businesses more?
No. It is about a fair distribution of the burden of taxation. The Scottish Government will not raise a penny more in income in 2010-11 or future years as a result of revaluation.
Why carry out the revaluation in a recession?
The revaluation is necessary because the relative value of business property changes. Some areas become more in demand, and so rental values rise, relative to the national average; demand falls in other areas, with rental values decreasing, relative to the national average. Rental value provides the basis of rateable value and so the five-yearly revaluation ensures each business contributes based upon up-to-date information.
Will my rates bill increase?
Some rates bills will rise, some stay the same and others will fall depending on circumstances.
Why has my rateable value been fixed at 1 April 2008?
The date is fixed two years before the date that valuations become effective to ensure that information to support the valuation process is available. It ensures fairness and is the same for all ratepayers.
Is there an easy way to calculate my new bill?
Yes. A Rates Calculator is available to get an estimation of your likely bill, based on the information you provide. This is only an indication however, as it does not take into account all of the non-domestic rates reliefs which may apply. Further information on reliefs is available on the Scottish Government's non-domestic rates website, which can be accessed here rates calculator
When will I be notified of my new bill?
Your local authority would have calculated your business rates bill in early 2010, using the new rateable value provided by the Scottish Assessor. If you are eligible for any discounts or reliefs on your bill your local authority will also apply these but you may need to submit an application for some of them, such as Small Business Bonus Scheme rate relief. You can check your eligibility with your local authority.
Will you be having a Transitional Relief (TR) Scheme?
No. Transitional Relief works by taking money off business who should see savings to subsidise those who see a rise. This is unfair and we want to pass on full savings to businesses.
Has account been taken of the recession?
Rental values in 2010 may be lower than they were in 2008, but that does not mean the Government will be collecting extra revenue.
Your new rates bill will depend on how your rateable value has changed relative to all other rateable values since the last revaluation, not on any changes in the rental market between 2008 and 2010.
What will the poundage be?
The poundage for 2010 -11 was 40.7p and for 2011-12 is 42.6p, the poundage supplement paid by larger businesses will be 0.7p for both years.
Where can I get advice about my new rateable value?
If you have any questions contact your local Assessor. You may also wish to consider taking professional advice from a solicitor or chartered surveyor. If you would like advice on professionally recognised rating advisers, call the Royal Institution of Chartered Surveyors Contact Centre on 0870 333 1600, or they can be contacted by email at: contactrics@rics.org. More information is also available on their website at www.rics.org and a facility to search for a local surveying firms is available at: www.ricsfirms.com
Further information on 2011-12 rates reliefs.
Check your eligibility with your local authority