The next revaluation of non-domestic property in Scotland will take effect from 1 April 2017. A revaluation results in the introduction of new valuation rolls which contain revised rateable values for all non-domestic properties in Scotland. Some 20% of rateable values are generally derived using the contractor's basis method of valuation.
This consultation paper addresses prescription of the decapitalisation rate to be used when subjects are valued using the contractor’s basis . As regards the decapitalisation rates themselves, this paper examines the methodologies available to reach the rates but does not suggest a preferred option. Ministerial decisions on the decapitalisation rates will take into account responses to the consultation.