Licensed hospitality valuation methodology: Gill review - terms of reference

To consider and report to Scottish Ministers on the valuation of the licensed hospitality sector, focusing on property types valued under the Scottish Assessors Association’s Licensed Premises and Hotels and Accommodation Subjects Practice Notes (“licensed hospitality”). This includes hotels, pubs, licensed restaurants (including any licensed restaurants not formally valued under those practice notes) and night clubs; but excludes properties such as self-catering holiday accommodation, bed and breakfasts, guest houses, caravans, camping or timeshare accommodation.

The Review Group will: 

• consider the methodology for the valuation of licensed hospitality properties in Scotland in accordance with the statutory rating hypothesis, including with reference to the approaches taken in other jurisdictions where properties are valued for the purpose of business rates on the basis of a hypothetical rental value
• consider what information is relevant and necessary to value licensed hospitality properties in accordance with the statutory rating hypothesis, the extent to which that information is currently available to Assessors (including the questions of return rates for, and the quality of the information provided in response to, Assessor Information Notices) and any other ways in which relevant information may be obtained
• consider in particular whether the current approach in valuation practice to the question of over (or under) performance should be re-examined
• based on the evidence, make findings and any recommendations that it considers appropriate (including, if appropriate, recommendations for legislative reform) about the above matters, having regard to financial, technical or any other considerations (including the revaluation cycle)

The Review Group will not consider the questions of the poundage rate or reliefs applicable to licensed hospitality properties, or mechanisms for the payment of rates.

The Review Group will give due consideration to ensuring fairness among all ratepayers and to ensuring that non-domestic rates revenue supports the delivery of local services upon which businesses and communities rely.