Non-domestic Rates Bill Passed

22nd June 2022

New law provides fairness for ratepayers.

Proposals to ensure the effect of the Coronavirus (COVID-19) pandemic on rateable values can only be considered at revaluation have been passed by the Scottish Parliament.

The Non-Domestic Rates (Coronavirus) (Scotland) Bill will ensure fairness and provide clarity, certainty and consistency for ratepayers.

Since the start of the pandemic, more than 40,000 appeals have been lodged with Valuation Appeal Committees. Any market-wide economic changes which may have impacted on property values, including any from the pandemic, will be reflected during the next revaluation on 1 April 2023.

Public Finance Minister Tom Arthur said:

"We all know the COVID-19 pandemic has had a major impact on the economy. We responded swiftly and on an unprecedented scale to support business through the pandemic when they needed it most.

"Businesses have benefited from more than £4.7 billion of support from the Scottish Government since the start of the pandemic, including around £1.6 billion of COVID-related rates reliefs.

“The Bill provides that in calculating the rateable value, or the net annual value, no account can be taken of any matter occurring on or after 2 April 2020, that is directly or indirectly attributable to Coronavirus.

“It maintains the integrity of the non-domestic rates system and the stability of public finances - and will provide clarity, consistency, and fairness to all ratepayers."

Read more on the Non-Domestic Rates (Coronavirus) (Scotland) Bill
https://www.parliament.scot/bills-and-laws/bills/non-domestic-rates-coronavirus-scotland-bill

The Bill does not apply to changes to the physical state of a property or whether a property should or should not be included in the valuation roll.

It does not remove ratepayers' right of appeal. It will be for appellants to decide whether they want to pursue or withdraw their COVID appeals.

The next revaluation on 1 April 2023 will be based on rental values on 1 April 2022.

The Non-Domestic Rates (Scotland) Act 2020 amended the definition of material change of circumstances to exclude changes in general economic circumstances, with effect from 2 April 2020.