Impact assessments undertaken regarding the current revaluation of non-domestic properties: FOI release

Information requested

A copy of the impact assessments undertaken for the policy and guidance underpinning the current revaluation of non-domestic properties. In particular any island communities impact assessment or business and regulatory impact assessment. If assessments have not been undertaken prior to changing the policy and guidance on how rateable values are now being calculated, please provide the determinations on why these were not undertaken and when those decisions were taken.

Also, confirmation of whether there was any public consultation on the practice note/guidance that assessors are currently using to determine rateable values and any consultation analysis/reports associated with these.

Response

Section 6(1) of the Valuation and Rating (Scotland) Act 1956 (“the 1956 Act”) states: “For the purpose of making up any valuation roll for the year 1961–62 or any subsequent year. . ., the net annual value and the rateable value of any lands and heritages shall, subject to of this Act and to any Order made under section 6 of the Local Government (Scotland) Act 1975, be ascertained in accordance with the provisions of this section.”

Section 6(8) of the 1956 Act further states: “the net annual value of any lands and heritages, shall be the rent at which the lands and heritages might reasonably be expected to let from year to year if no grassum or consideration other than the rent were payable in respect of the lease and if the tenant undertook to pay all rates and to bear the cost of the repairs and insurance and the other expenses, if any, necessary to maintain the lands and heritages in a state to command that rent.”

No impact assessment is available for the policies provided for in the 1956 Act. There has been no change in the policy on how rateable values in general are determined by Scottish Assessors since the 1956 Act and the Scottish Government does not produce guidance on this matter nor does it have any locus to do so. Valuation for the purposes of non-domestic rates is a matter for Scottish Assessors who are independent of local and central government.

The Scottish Assessors Association will consult when they propose significant or fundamental changes to Practice Notices and information on the consultation procedure is published at SAA Consultations.

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