Section 2 – Revaluation years
9.Section 2 amends the definition of “year of revaluation” in section 37(1) of the 1975 Act so that revaluations will be carried out every three years, rather than every five years.
10.Non-domestic rates are calculated using the rateable value of a property included in the valuation roll. For most properties, the rateable value is generally based upon its estimated open market value on the “tone date”(2) were it to be vacant and to let. The rateable value requires to be reviewed periodically to reflect changes in the property market.
11.Section 1(1) of the 1975 Act requires assessors to make up a valuation roll for each year of revaluation. “Year of revaluation” is defined in section 37(1) of the 1975 Act. At the time the Bill for the Act was introduced into the Scottish Parliament, that section defined “year of revaluation” as the year 2017-18 and every fifth year thereafter. At that time, therefore, the next year of revaluation was due to be the year 2022-23. Paragraph (a) of section 2 was intended to preserve 2022-23 as a year of revaluation, while paragraph (b) provides for subsequent years of revaluation to be every third year after the previous revaluation.(3)
At the time the Bill for the Act was introduced into the Scottish Parliament, the “tone date” was 1 April two years before the date of the revaluation. The Act does not change that date. However, since enactment, the tone date has been changed (by the Valuation (Postponement of Revaluation) (Coronavirus) (Scotland) Order 2020 (S.S.I. 2020/418)). At the time of publication of these Notes, the tone date is 1 April one year before the date of revaluation.
The intention for the next year of revaluation to be 2022-23 has been subsequently revised, however: the Valuation (Postponement of Revaluation) (Coronavirus) (Scotland) Order 2020 (S.S.I. 2020/418) substituted, for the previous reference in the definition of “year of revaluation” to 2017-18, a reference to 2023-24, superseding the change made by section 2(a). At the time of publication of these Notes, therefore, the next revaluation is scheduled to be in 2023-24 (with the tone date being 1 April 2022), with the next revaluation after that being scheduled for 2026-27.