Fees for appeals on non-domestic rating valuations: consultation

Background

The non-domestic rates system was reviewed in 2017 by the independent Barclay Review which aimed to support growth, improve administration and increase fairness of the non-domestic rates system.

The report of the Barclay Review called for reforms to the appeals system to modernise the approach, reduce appeal volume and ensure greater transparency and fairness^[1]. The Scottish Government accepted the recommendation to reform the appeals system, and a new two-stage appeals system was introduced on 1 April 2023 under the Non-Domestic Rates (Scotland) Act 2020. The two-stage process is intended to improve information-sharing between parties early in the process and help settle appeals amicably without necessarily requiring the involvement of the Scottish Tribunals.

In the first stage of the appeals process, if an owner, tenant or occupier disagrees with the valuation of their non-domestic property, they must lodge a proposal with the Assessor. The proposal must contain certain information including the grounds of the proposal, evidence to support the grounds, and a statement explaining how the evidence supports the grounds. An owner, tenant or occupier (as the case may be) cannot lodge a proposal if they pre-agreed the valuation with the Assessor in advance of a revaluation.

Following receipt of a proposal, the Assessor will write to confirm they have all the information they need, or to ask for further information. Thereafter, if the Assessor deems the proposal complete, they will issue a written statement responding and will generally provide a Proposal Determination Date (PDD) for which they must give at least 70 days’ notice to the ratepayer. The proposer has 28 days to reply to this statement and provide any new information that did not exist when the proposal was submitted. On, or before, the PDD the Assessor will issue a decision on the proposal.

The second stage of the process is that an appeal against a proposal may in certain circumstances be lodged with the Local Taxation Chamber (LTC) of the First-tier Tribunal for Scotland. The LTC is supported administratively by the Scottish Courts and Tribunals Service.

Appeals can be lodged where the Assessor decides not to change the entry in the valuation roll for the property, or changes it in a way the proposer did not request or agree with. Appeals can also be lodged where the Assessor does not comply with certain statutory timeframes. That is where the Assessor does not send the decision by the deadline for disposing of the proposal (this is the last date a PDD can be set for a given proposal which may depend on when a proposal was made and why) or does not provide a PDD within 70 days of the deadline for disposing of the proposal. Prescribed timescales apply for submitting such appeals (see Annex A).

The Non-Domestic Rates (Scotland) Act 2020 allows Scottish Ministers to make provision by regulation for the levying of a fee both at the proposal and at the appeal stage through secondary legislation. The Tribunals (Scotland) Act 2014 also allows Scottish Ministers to make provision for the Scottish Tribunals (which comprises of the First-tier Tribunal for Scotland and the Upper Tribunal for Scotland) to charge reasonable fees in respect of any matter dealt with by the Scottish Tribunals.

There is currently no fee for lodging a proposal with the Assessor, or lodging an appeal with the LTC.

This consultation seeks views on the potential for fees for appeals on non-domestic rating valuations lodged with the LTC. Scottish Ministers have no intention at this time to consider fees for proposals.

The most recent statistics available indicate that by 31 March 2025, the Scottish Assessors had received proposals against the valuations of 18,206 properties. This accounts for around 7% of properties on the valuation roll, and around 40% of the rateable value at revaluation. By 31 March 2025, the Scottish Assessors had been informed by the Scottish Tribunals of appeals lodged against proposal outcomes for 867 properties.

Some appeals, such as complex or highly technical ones, can be referred to the Upper Tribunal for Scotland for determination. Prior to 1 April 2023, such appeals were considered by the Lands Tribunal for Scotland where fees were charged for these appeals. These fees continue to apply for any such appeals heard by the Upper Tribunal, and the fee structure is set out in Annex B.