Property consultancy firm Gerald Eve is the SLTA’s adviser ahead of the 2017 Rating Revaluation in Scotland. The firm’s Martin Clarkson tells Karen Peattie what Scottish operators need to know
WITH the revaluation of commercial property business rates now under way it is important for all licensed trade operators to be aware of the facts and timescales involved, so the SLTA has joined forces with the experts to ensure that no member is left in the dark.
Martin Clarkson, a Partner at Gerald Eve LLP, points out that the owners or occupiers of commercial property should have received requests for information from the assessor over the last few months. “It’s easy to put these things to the back of your mind and forget about them, or stick the letter in a drawer or filing cabinet to deal with at a later date,” he says.
“However, it’s really important that you deal with this as soon as possible because the information you provide will be used to work out what your rates will be from April 1, 2017. If the information is accurate and complete there is less chance of errors being made.”
It is, of course, widely anticipated that many premises will experience a significant increase in their rateable value and the SLTA has gone as far as to suggest that many outlets could close unless there is radical change to the way business rates are calculated for the industry.
Gerald Eve, a UK-based firm of international property consultants and one of the country’s leading chartered surveyors, worked with the SLTA to produce a Business Insight Survey which revealed that 57% of on-trade outlets in Scotland felt they were paying more in rates versus other businesses of similar size. None were aware of a situation where they are paying less.
The survey, based on responses from more than 700 on-trade outlets across the country, highlights the need for reform, says Clarkson. “We are finding that more businesses are taking notice of their rates and that is good news,” he continues. “What everyone wants is an accurate rates bill but if you think it is too high you must be aware that there is a very narrow window for appealing.
“There won’t be much time and you will have to act quickly,” he continues. “The message we are getting is that there has been a relatively low response rate to the request for information from the assessor, despite reminders, so please get on top of it – at the end of the day, ignorance is no defence.”
Clarkson reminds operators that the new valuations will be in place for the next five years, and that assessors take into account several criteria including turnover, expenditure, and if the premises are owner-occupied. “There is a perception that you are being penalised for being successful and that is something we hear from a lot of clients,” he says.
Gerald Eve can help SLTA members collate the information required by assessors and complete the form, as well as provide an estimate of what your 2017/18 rates might be in order to help you budget.
Martin Clarkson BSc MRICS is a Partner at Gerald Eve LLP – www.geraldeve.com
TIMESCALES
January 2017: New rateable values published on Scottish Assessors Association website
March 2017: Valuation notices issued
April 2017: New rateable values comes into effect
April-September 2017: Opportunity to appeal