Graham+Sibbald Business Rates Newsletter December 2024 Update

Business Rates Newsletter
December 2024 Update

Welcome to our December Newsletter for 2024! 
If there is anything else you would like to know, please find contact details for our team at the bottom of this newsletter.
We hope you all have a very Merry Christmas when it comes.

Rating News

• Negotiations with Scottish Assessors continue across the country on 2023 Revaluation challenges including schools, industrial and offices. Negotiations on 2023 Revaluation appeals must be concluded by end December 2025 with reimbursement backdated to 1 April 2023
• Graham & Sibbald’s Rating team has saved clients in excess of £4million in rateable value, to date,  with the larger valued subjects still to be negotiated
• The recent UK Budget announced amendments to rates relief, solely in England, but had no clarification on a review of the Rating system as mentioned in the Labour manifesto
• The next Revaluation will be proceeding as from April 2026 based on rents and build costs around April 2025
• Assessors have already started issuing ‘Returns’ in preparation for the 2026 Revaluation with a 28 day time limit 
• Rateable Value is the assumed rent at the statutory date, 1 April, in the year prior to the Revaluation

The Return of Information Form is usually issued annually and seeks:

• confirmation of ownership, tenancy and occupation
• physical changes that may have been made to the property
• the amount of rent currently paid
• the terms of the lease

If you have received an Assessor Information Notice asking you to provide rental information we would be happy to advise. Incorrect information can have an adverse effect on a future valuation.
 
This form should not be confused with the Return of Occupation Form also issued by the Assessor. 

• This form seeks specific information about the lease between the proprietor/owner and the tenant or occupier currently included in the Valuation Roll

Penalties for Non-Compliance
If a person fails to comply with an Assessor information notice within 28 days the person is liable to pay a penalty.
The penalty can range from £200, and/or 1% of the rateable value of the property.
If the person fails to comply within 42 days there will be a further penalty of £1,000, and/or 20% of the rateable value.

Land and Building Transaction Tax (LBTT)
Clients have been confused with letters issued by HMRC in connection with LBTT. This is not related to Rating.

Land and Buildings Transaction Tax (LBTT) was introduced on 1 April 2015 and it may apply to anyone leasing non-residential land or property in Scotland. Where a lease has been granted on or after 1 April 2015 then an LBTT return must be submitted by the tenant to HMRC.

Non-Domestic Proposals
From 1 April 2023 appeals against an entry in a Valuation Roll has to be initiated by the submission of a Non-Domestic Proposal.
This is the mechanism for proposing an alternative value where you believe your value is incorrect and must include an alternative valuation and comparable evidence.
The time limit for submission is specific:
Revaluation - 31 August in the year of Revaluation. Appeals are now out of time.
New owners, tenants or occupiers - Within 4 months of acquiring an interest in a property.
New entries or altered entries - Within 4 months of the issue of the notice advising the new or altered entry.
An Error - Up to the last day in that financial year, 31 March.
Material change in circumstances - To be lodged in the year of the physical change.

New Rate Poundage 2025/26 & Rates Relief
The new poundage for this financial year is normally announced in February/ March. Normally any changes to rates reliefs will be announced at the same time.
We will issue a Newsletter to confirm these changes.

Any Questions?

Tim Bunker 
T: 07803 896 935
E: tim.bunker@g-s.co.uk

Amy Thomas
T: 07867 606 796
E: amy.thomas@g-s.co.uk

Calum Campbell
T: 0141 332 1194
E: calum.campbell@g-s.co.uk

Stuart Blyth
T: 07789 557 681
E: stuart.blyth@g-s.co.uk

Marta Calanca
T: 0141 332 1194
E: marta.calanca@g-s.co.uk

General Enquiries
E: rating2023@g-s.co.uk
W: www.g-s.co.uk