Rates Demand Notices Go Out
22 April 2010
Non-domestic rate payers have been issued with Rates Demand Notices by local authority departments throughout the country. Rate payers will now know, to their cost, the full effect of the non-domestic rating revaluation, for which valuation notices were issued last month. The message is now clear: challenge your assessment now or potentially pay the penalty for up to five years.
As all non-domestic rate payers in Scotland will be now well aware, values on the whole have significantly increased. This is mainly due to rental levels at or around the valuation date of April 2008 having increased by a greater amount over the five year period commencing April 2003. It is the Assessor’s remit to attempt to estimate what the rental value of a property is at or around the aforementioned April 2008 date, this not withstanding that the new Rateable Value did not take effect until 1 April of this year. One dilemma which, we believe, the Assessor faces is, however, that he must take account of physical circumstances at the beginning of 2010 while trying to determine the rental value of the property some 2 years earlier. Not a simple task under the circumstances, and one which is worthy of the closest scrutiny. For our part we do recommend that all non-domestic rate payers take the opportunity, if not to formally appeal, at least to look closely at that which has been proposed by the Assessor to ensure that the revised assessments which are being proposed are in order.
Now that the Rates Demand Notes have been issued, rate payers will be aware of the increases, and in some cases, decreases in non-domestic rates with which they will be faced. For those who have suffered increases, clearly they will wish to investigate the assessments further. It is equally important, however, that where liability has decreased, steps are also taken at this time to investigate the assessments proposed. The opportunity to appeal is only available until 30 September of this year, after which time, save under special circumstances, objections will not be accepted for a further 5 years at least. Rates payments can increase in the next financial year if the Uniform Business Rate increases, therefore, appealing now is a priority.
Rate payers are concerned at the levels of increase which have been proposed. While the Scottish Office have been at pains to underline that 60% or so of non-domestic rate payers may be better off as a result of the Revaluation, this is mainly due to improved relief packages for small businesses. Conversely any company with Rateable Values in excess of £30,000 will have to pay the price. Larger companies are being targeted and at a time when they are being asked by their customers and suppliers to be ultra competitive.
The message is that you have the opportunity to appeal up until 30 September of this year, after which time that opportunity will be lost. Act now or pay the penalty until April 2015.
