Fees for appeals on non-domestic rating valuations: consultation

Why are we consulting on fees for appeals on non-domestic rating valuations?

The Scottish Government is seeking views on the potential introduction of fees for non-domestic rates appeals lodged with the LTC to help improve the efficient running of the appeals system, and support one of this government’s four priorities: Ensuring High Quality and Sustainable Public Services.

It is important that the non-domestic rates system be fair and transparent, with an appeals system which enables evidence-based challenges to be resolved efficiently and effectively. Speculative challenges can take up significant resource and put considerable strain on the appeals process, and the two-stage system places a responsibility on proprietors, tenants or occupiers who do not agree with their valuation to set out the reasons why and provide evidence supporting this. The new system has seen a significant decrease in the number of proposals lodged (18,510 as at 31 December 2024) compared to the appeals lodged against the valuation of 73,885 properties at the 2017 revaluation, many of which were resolved without any change in rateable values.

The Scottish Government is consulting on the potential for fees for rating appeals lodged with LTC as a means to further support this and ensure that appeals are only lodged where supported by evidence. This is important to ensure, in the interests of access to justice, that appeals can be resolved efficiently and effectively, delivering fairness for all while also ensuring sustainable and high-quality public services.

An effective tribunal system plays a vital role in upholding the rule of law and providing accessible justice. The LTC, within the Scottish Tribunals structure, deals with a range of matters relating to local taxation including appeals regarding entries made by assessors to the valuation roll for non-domestic properties. Potentially, introducing an appropriate fee for rating appeals lodged with the LTC would ensure that users are contributing to the running costs to deliver this service, and improve cross-jurisdictional consistency as fees are already in place for users of the equivalent tribunal in England. As such, any fees, if introduced, would assist in ensuring that the tribunal service continues to effectively contribute to accessible justice.

Careful consideration therefore needs to be given to the potential introduction of fees for rating appeals lodged with the LTC, with affordability, proportionality and simplicity three key principles underpinning a fair and reasonable approach to any fees in the Scottish Tribunals. The responses to this consultation will help inform this consideration.

The introduction of fees for rating appeals would require secondary legislation. In the interests of fairness and practicality, any fees would be introduced at the start of a revaluation cycle. Revaluations are every three years and the next one is on 1 April 2026.

In line with the New Deal for Business principles, the Non-Domestic Rates sub-group established under the New Deal for Business has provided a forum for initial engagement and dialogue with business on the potential for fees for appeals on non-domestic rating valuations, and views are now formally invited from all stakeholders with an interest. The consultation questions can be found in Annex C.