Local government finance circular 7/2022: decapitalisation rates for the 2023 revaluation

Local government finance circular 7/2022, containing information about decapitalisation rates for 2023 revaluation.

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Non-domestic rates: decapitalisation rates for the 2023 revaluation 

1.    Decapitalisation rates are used by the Scottish Assessors when valuing certain non-domestic property using the ‘contractor’s basis’ method of valuation. Ministers have prescribed decapitalisation rates for all revaluations since 1990.

2.    A public consultation on setting the decapitalisation rates for the 2023 revaluation was carried out from 20 December 2021 to 13 March 2022, and contains further background.

3.    Having regard to the considerations in the consultation paper and having considered the responses, Scottish Ministers have decided to retain the prescribed standard and lower rates at 4.6% and 2.9% respectively. The Valuation for Rating (Decapitalisation Rate) (Scotland) Regulations 2016 will therefore remain in force.

4.    Draft 2023 values for rateable non-domestic properties, including those valued by the Assessors on the Contractor’s basis, will be published on 30 November 2022. Final rateable values will come into force on 1 April 2023.

Yours sincerely,

Anouk Berthier
Local Government and Analytical Services Division

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