This week marks one month before the 2023 Revaluation Tone date and 13 months before the commencement of the new appeal system. Non-Domestic Rates for the 2023 Revaluation in Scotland will be based on values as at 1st of April 2022, known as the “tone date”.
What is the “Tone Date”?
The rateable value of a non domestic property represents an assessment of the open market rental value of the property at a specific date, namely the statutory “tone date” (also referred to as the Antecedent Valuation Date, or AVD). In the upcoming Revaluation in Scotland the tone date will be 1st April 2022, one year ahead of when the 2023 Revaluation takes effect, when all non-domestic properties will be assessed the rateable values (RVs) which will govern business rates payments for the following 3 years.
The tone date is the reference date for which rental information, costs of construction or fitting out and, for some types of property, accounts or turnover information will be collected by the Scottish Assessors to assist with this process. The information will be analysed by the Assessor to establish the RV for each class of property in each locality. This information is also the data ratepayers and their specialist advisors such as Gerald Eve will need to undertake independent analysis, valuations and to assist with engagement with the Assessors and, where required, to include in formal proposal and appeal documents.
Assessor Information Notices —Reminder
As we near the April 2022 tone date a reminder is timely that the Scottish Assessors are now issuing Assessor Information Notices (AIN) to obtain information in preparation for the 2023 Revaluation. It is therefore imperative that any notice received is directed to the appropriate person within your organisation and acted on within the statutory time limit; AND that relevant information is also forwarded to your contact at Gerald Eve.
A reminder of the penalties for failure to return information when requested:
- Stage 1 Penalty – non return within 28 days from issued AIN could result in a fine of the greater of £200 or 1% of the rateable value of the property at the time (or £1,000 where the Lands and Heritages are not currently entered in the Valuation Roll);
- Stage 2 Penalty – non return within a further 42 days from original penalty notice could result in fine of the greater of £1,000 or 20% of the rateable value of the property at the time (or £10,000 where the Lands and Heritages are not currently entered in the Valuation Roll);
- Stage 3 Penalty – no return after period of a further 56 days from original penalty notice could result in a fine of the greater of £1,000 or 50% of the rateable value (or £50,000 where the Lands and Heritages are not currently entered in the Valuation Roll)
The penalties are cumulative and where no response is provided a fine of up to 71% of the rateable value could be issued. Any penalty notice issued by an Assessor can be appealed, however there are strict grounds for an appeal which would be determined by a Committee.
We will continue to keep you updated on all relevant matters over the coming weeks and months, and as we approach milestone dates and deadlines relative to the 2023 Revaluation.