Business owners in North-east Scotland could be missing out on thousands of pounds by failing to lodge Rating Revaluation appeals before the end of September this year.
September 30 is the deadline for lodging Rating Revaluation appeals and Material
Change of Circumstance appeals that could help hard-pressed businesses mitigate the impact of massive increases in their business rates bills brought about by the revaluation enforced by the Grampian Assessor on behalf of the Scottish Government as at April 1, 2017. The opportunity to appeal the new rateable values is limited to a six month period.
Businesses in the hospitality, engineering, oil services and retail sectors in and around Aberdeen have been hit by massive increases in Rates bills as a result of the revaluation, and feel they have been dealt a double whammy due to the downturn in the local economy and property market which have been hit by the oil price crash. This occurred shortly after April 2015, which is the date when the new Rateable Values were determined.
Gordon Fettes, senior surveyor at Knight Frank in Aberdeen, is concerned business owners could end up missing out on Rates savings if they don’t appeal before the end of the month.
Mr Fettes said: “Individual business rate payers can appeal their Revaluation assessment if they are concerned it is incorrect, but many people may still not be aware of how this can be done or realise how much money they could save, which could amount to several thousand pounds.
“Local government and the Scottish Government offer a range of Transitional Relief Schemes in the North-east that can help businesses adjust to this Revaluation, which is proving particularly difficult due to the state of the local economy.
“Some businesses could see potential savings of up to 16.5% from their 2016/17 Rateable Values as a result of the downturn in the oil industry in the North-east of Scotland if they submit Material Change of Circumstance appeals. Any savings achieved as a result of these appeals will be backdated but will only apply to the 2016/17 financial year. There will also be opportunities to submit further appeals in this respect for the current and upcoming financial years. These are also subject to deadlines, the next being March 31, 2018.”
There are three Transitional Relief Schemes available from the Scottish Government, Aberdeen City Council and Aberdeenshire Council:
The Scottish Government has agreed to give Business Rates Relief to hospitality businesses throughout Scotland and office premises in Aberdeen and Aberdeenshire. Current figures show that less than half of the allocated funding, £7,500,000 in total, has been allocated to date.
Aberdeen City Council and Aberdeenshire Council have agreed to give additional Business Rates Relief to property types which are not covered by the Scottish Government Relief Scheme (Aberdeenshire Council Business Rates Relief will be applied automatically, if the subjects are eligible).
Businesses are required to submit an application to Aberdeen City Council for their Local Business Rates Relief Scheme by September 30, 2017
The value for the Aberdeen City Council Scheme has been set at £4,500,000 while Aberdeenshire Council Scheme has been set at £3,500,000.
As an example, a medium-sized office in Aberdeen’s West End, which has seen a Rateable Value increase of £51,000, effective for the next five years unless appealed, with a Rates payable ( bill ) increase of £21,600 for this financial year, prior to the Transitional adjustment.
Transitional Relief would offer a saving of £7,007 and a Material Change of Circumstance could deliver a saving of £14,013 for the 2016 / 2017 financial year.
Mr Fettes added: “Given the large increases seen throughout the city there should certainly be room for Appeal reductions to the new Revaluation figures.
“Although not all properties will be eligible for these Business Rates Relief Schemes, many will be and while many businesses will already be fully aware of what they need to do to access Rates Relief, we believe it’s important to remindowners the deadline is approaching to ensure they take the necessary steps to secure what they are entitled to.”