The Courier & Advertiser (Fife Edition)
Last chance
Rates review deadline looms large –
The Barclay review of non-domestic rates in Scotland was less radical and far-reaching than it might have been.
Among the changes are a business growth accelerator, which means that the occupier of new build non-domestic properties will not be liable for rates until 12 months after first occupied.
A similar 12-month delay will be introduced before rates are increased following improvements/extension to an existing building.
This is a welcome and sensible move, although it appears to have been recommended by Barclay at the expense of increasing levels of empty property relief, which is a missed opportunity.
Another recommendation is that revaluations will be three yearly – rather than five yearly, or more – from 2022, with a “tone date” one-year prior.
This was widely expected and makes sense.
The recommendation includes a move to more frequent revaluations be carried out in tandem with reforms to the appeal system to reduce the volume of appeals and speed up the process.
Day nurseries will receive 100% relief from business rates from April 1, 2018.
It has also been confirmed the transitional relief cap in rate rises for the hospitality sector throughout Scotland and for offices in Aberdeen city and Aberdeenshire will be extended to 2018/19.
The Scottish Government has confirmed the majority of the recommendations will be implemented.
Finance Secretary Derek Mackay has, however, said that some Barclay review recommendations require further consideration and engagement – including the recommendation charitable relief be removed for arms-length organisations and private schools.
Mr Mackay, whilst stressing that the Scottish Government remained committed to small business relief, has also indicated the Small Business Bonus Scheme should be subjected to a substantive review.
As an overall package of reforms, we broadly welcome most of the Barclay Review recommendations and the swift action taken by the Scottish Government to implement and expand on the recommendations.
There are things that we would have approached differently, and there are – in our opinion – some missed opportunities. Overall, however, the changes appear to be for the better.
In respect of the 2017 revaluation, we would urge ratepayers to ensure they take steps to lodge an appeal against their new rateable value ahead of the September 30 deadline – or face the prospect of potentially paying more than they should for the next five years.