Breaking News: Revaluation 2022 Postponed

September 2, 2020

In disappointing news, especially for north-east ratepayers, the Scottish Government has announced that the 2022 business rates revaluation is postponed by one year to 1 April 2023 in line with England and Wales. However, in a different approach to south of the border, the 2023 Revaluation will be based on levels of value prevailing at 1 April 2022 (England & Wales 1 April 2021), a move to a one year valuation date in place of the previously long-standing two year period. The measure to have a one year “tone” date brings forward the recommendation in the Barclay Review of Business Rates which was not scheduled for commencement until after the next revaluation.

The Government say that this extension will allow more time for market conditions to fully adjust to any post-Covid effects, enabling a more accurate and sustainable tax base. Ratepayers will say that a revaluation is needed now so that the tax burden is adjusted to reflect the quite different economic environment businesses currently face, rather than a delay at disproportionately high rates bills.  

This is significant in the context of existing rateable values that were calculated by reference to rental levels in early 2015 considering the subsequent economic shocks and challenging conditions that were initially brought about by a sustained depression in the oil and gas sector, only now compounded by the coronavirus pandemic. Particularly for the Grampian region this is an untimely reminder of history repeating itself following the two year delay to the last revaluation that resulted in the huge spikes in rateable values in April 2017 in the first place, which now will persist for even longer. Ratepayers will continue to face rates demands based on vastly disproportionate rateable values compared to actual market rents and conditions. It is now more critical than ever that the clear material change of circumstances brought about by the pandemic is reflected in rateable values as soon as possible. This will at least provide some relief to ratepayers experiencing an exceptionally challenging environment and one which has been sustained in the north east for some time and looks set to continue.

The Scottish Government has committed to three-yearly revaluations after 2023 and so the next revaluation after 1 April 2023 will therefore be statutorily scheduled for 1 April 2026 (with a tone date of 1 April 2025). More information can be found at https://www.gov.scot/publications/protecting-scotland-renewing-scotland-governments-programme-scotland-2020-2021/pages/8/

The experienced Rating Team at FG Burnett can assist ratepayers to reduce the rating burden wherever possible and has submitted many material change appeals following Covid-19 on behalf of clients. For further advice and support, please not do not hesitate to contact richard.foster@fgburnett.co.uk

FG Burnett FG Burnett @FGBurnett New to the market - Open Plan Suite with Car Parking To Let. For info please contact lisa.cowie@fgburnett.co.uk 012… https://t.co/UJ65iMNInJ 1 week ago
FG Burnett FG Burnett @FGBurnett New to the market - Open Plan Suite with Car Parking To Let. For info please contact lisa.cowie@fgburnett.co.uk 012… https://t.co/Cqy06Cn7yI 1 week ago
FG Burnett FG Burnett @FGBurnett New to the market – Fully Fitted Office Suite with Parking To Let. For info please contact graeme.nisbet@fgburnett.… https://t.co/BMVsMDjw1p 2 weeks ago
FG Burnett FG Burnett @FGBurnett TO LET - ground floor retail/office unit on a prominent corner location in the West End of Aberdeen. Suitable for v… https://t.co/omooxvU0hB 2 weeks ago
FG Burnett FG Burnett @FGBurnett The team at FG Burnett wish you all a Merry Christmas and a healthy and prosperous New Year. #christmaswisheshttps://t.co/HpthlwQmU5 5 weeks ago
FG Burnett FG Burnett @FGBurnett City Centre Retail Unit with Prominent Corner Location To Let. For info please contact daniel.mitchell@fgburnett.co… https://t.co/Xe0zEjpADG 5 weeks ago
FG Burnett FG Burnett @FGBurnett Ground Floor Retail Property To Let/May Sell. For further info please contact daniel.mitchell@fgburnett.co.uk 01224… https://t.co/R1okA6DLK6 6 weeks ago
FG Burnett FG Burnett @FGBurnett 3 Storey Office To Let. Available as a whole or separately. For further info please contact graeme.nisbet@fgburnett… https://t.co/Sy5uxXgyeh 6 weeks ago
FG Burnett FG Burnett @FGBurnett Our Building Surveyors braving the snow in East Kilbride. #commercialproperty #scotland #buildingconsultancyhttps://t.co/R8yFVvieYJ 7 weeks ago
FG Burnett FG Burnett @FGBurnett Grade A Office Building with Car Parking To Let. For further info please contact lisa.cowie@fgburnett.co.uk 01224 5… https://t.co/ipqKl16eYB 7 weeks ago
FG Burnett FG Burnett @FGBurnett Rare opportunity to purchase small lot size in Aberdeen City Centre. Reduced price £70,000. For further info please… https://t.co/4bsAik15c8 7 weeks ago
FG Burnett FG Burnett @FGBurnett Modern High Specification Office Pavilion with 20 Car Parking Spaces To Let/For Sale. Reduced price £575,000. For f… https://t.co/uvb3KVjNLo 7 weeks ago