Section 13 – Meaning of “material change of circumstances”
73.At the time of publication of these Notes, a proprietor, tenant or occupier of lands and heritages can appeal against the entry in the valuation roll relating to the lands and heritages if there was a material change of circumstances (section 3(4) of the 1975 Act17). Under section 1(6)(c) of the 1975 Act assessors may, and under section 2(1)(d) of that Act they must, alter an entry in respect of lands and heritages in the valuation roll to reflect any alteration in the value of the lands and heritages which is due to a “material change of circumstances”.
74.Section 37(1) of the 1975 Act defines “material change of circumstances” for these purposes. Broadly speaking, this means a change of circumstances affecting the value of the lands and heritages. Prior to section 13 of the Act coming into force, this definition did not exclude general economic factors (e.g. a general increase or decrease in rents), with the result that such factors could form the basis of an appeal against an entry in the valuation roll.
75.Section 13 amends the definition of “material change of circumstances” in the 1975 Act to exclude changes in general economic circumstances (specifically, changes in the rent of particular lands and heritages or any other lands and heritages, or in the level of valuations generally or in the value of lands and heritages generally). Following section 13 coming into force, proprietors, tenants and occupiers are therefore no longer able to request the alteration of an entry in the valuation roll on the basis of such changes.
This provision will be repealed by section 10(3)(b) of the Act when it comes into force, but new section 3ZA(2)(c), inserted by section 10(4) of the Act, instead allows a proposal to change the entry to be made on the ground that there has been a material change in circumstances.
