Companies urged to lodge rates appeals

Businesses have until September 30 to challenge non-domestic rates charges

April 1 saw the introduction of new rateable values on all non-domestic properties in the country.

The hospitality sector has probably been hit the hardest by the 2017 revaluation.

Countless pubs, hotels, restaurants, cafes, hostels and serviced apartments, amongst others, have suffered huge increases in their rateable values – an incongruous situation given the hospitality sector has hardly been flourishing in recent years.

We have been instructed on many appeals where hospitality-sector ratepayers have been faced with their rateable value increasing massively, with the biggest jump I have seen being faced by a restaurant in Edinburgh where the rateable value has increased by an incredible 543%.

Whilst the 14.75% real-terms cap on business rates rises on hospitalitysector properties introduced by the Scottish Government for year 2017-18 – a relief that also extends to offices in Aberdeen City and Aberdeenshire – is welcome, it is only a short-term measure and the spectre of huge increases in rates bills has not gone away.

Proprietors, tenants and occupiers of all non-domestic properties in Scotland have the right to lodge appeals against their rateable values. Anyone who has not yet appealed still has time to safeguard their position.

The last date for appeals to be lodged is September 30.

My advice is simple – speak to a rating specialist immediately and, if they advise that an appeal is recommended, follow that advice.

It is, of course, not only in the hospitality sector that ratepayers should be thinking about lodging appeals.

Whatever has happened to the rateable value of a property – whether it has increased, stayed the same or even decreased – appeals should always be seriously considered.

The bottom line is this – if you don’t appeal, you are accepting you or your business may be paying more business rates than you might have to.

It is not too late to act, but don’t delay.

Many pubs and accomodation providers – including Perth’s historic Salutation Hotel, pictured, were hit with huge rates demands.