This item was published during the term of a previous administration that ended in April 2007
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Consultation on non-domestic rates scheme
30/06/2004
A consultation paper was issued today seeking views on the need for a transitional scheme to be put in place at the 2005 non-domestic rates revaluation and on the format any scheme might take.
Every five years the Scottish Assessors must revalue all non-domestic subjects in Scotland. This ensures that rates bills reflect an up to date assessment of market rental values. The next revaluation takes place on April 1 2005.
For those ratepayers whose rateable values increase by more than the Scottish average - it is too early in the revaluation process to say what this figure might be - this will result in these ratepayers facing real increases in their rates bills. The aim of transitional arrangements is to protect ratepayers from sudden sharp increases in their bills in the period immediately following the revaluation. This allows ratepayers time to plan to accommodate the true bill over a longer period.
Making the announcement, Minister for Finance and Public Services Andy Kerr
said:
"I welcome comments from businesses and rating specialists on whether a transitional scheme needs to be put in place at April 1 2005 and if so what form that scheme might take.
"We will give careful consideration to all responses received before any final decisions are taken.
"I have previously said that we will examine ways to give more notice to ratepayers of changes in their rates bills as a result of the 2005 Revaluation so they can plan their finances accordingly.
"Consulting at an earlier stage on transitional arrangements than at previous revaluations will help us achieve our aim of letting ratepayers know details of any transitional scheme by November 2004 - around five months before any scheme would be implemented."
Occupiers of non-domestic subjects (property) in Scotland pay non-domestic rates. Non domestic rates are levied on the basis of a national poundage rate - set annually by the Scottish Ministers - multiplied by the rateable value of each non-domestic subject in the valuation roll. The rateable values for non-domestic subjects are set by the Scottish Assessors. The rateable value is an Assessor's estimate of the annual rent which a subject would command on the open market.
Under existing legislation, the Scottish Assessors are required to revalue all non-domestic subjects in Scotland every five years. The purpose of a revaluation is to update rateable values on non-domestic properties to reflect more up-to-date rental levels. This creates a closer, fairer link between modern property values and the amount of rates payable
by individual ratepayers. In other words it ensures that the distribution of the rates burden between ratepayers remains equitable. The next revaluation is due to take place on April 1 2005.
At previous revaluations - 1990, 1995 and 2000 - transitional arrangements were put in place to protect individual ratepayers from the effect of the revaluation on their rates bills. The consultation period will last for 12 weeks and the closing date for responses will be enter date. Copies of the Consultation Paper can be accessed at: http://www.scotland.gov.uk/view/views.asp. Paper copies can be obtained by post from Stuart Blackie, Transitional Arrangements Consultation, Local Government Constitution and Funding Division Area 3J (North), Victoria Quay, Edinburgh, EH6 6QQ or by e-mail from TA2005.consultation@scotland.gsi.gov.uk.