Non-Domestic (Business)Rates Revaluation 2010

Appeal Procedure

Non-Domestic (Business)Rates Revaluation 2010

Appeal Procedure

The Scottish Government, Edinburgh 2009

© Crown copyright 2009

ISBN 978-0-7559-8163-2

The Scottish GovernmentSt Andrew’s HouseEdinburghEH1 3DG

Produced for the Scottish Governmentby RR Donnelley B61966 10/09

Published by the Scottish Government, 2009

Background

The Scottish Assessors are required bystatute to revalue all non-domestic propertyin Scotland every 5 years. The purpose of arevaluation is to update rateable values toreflect current rental levels. The 2010Revaluation will be based on rental levels asat the statutory date of 1 April 2008.Revaluations result in the production of anew valuation roll which contains revisedrateable values for all non-domestic landsand heritages (properties) in Scotland.

You will receive a valuation notice in early2010, which will show the new rateable valueof your business property which takes effectfrom 1 April 2010. To calculate your bill youwill need to multiply this figure by thepoundage set by the Scottish Government andapply any reliefs to this. A rate calculator andfurther information on revaluation is availableat www.scotland.gov.uk/revaluation.

Ratepayers who disagree with the rateablevalue assigned by the Assessors to theproperty they occupy have a right of appealto their local Valuation Appeal Committee(VAC), or in certain circumstances to theLands Tribunal, and ultimately to the LandsValuation Appeal Court. The purpose of thisguidance is to explain the appeal process.

IntroductionThe following is a guide to what happens ifyou decide to appeal against the valuationwhich the Assessor has set for your property.It applies to appeals lodged on or after1 April 2010. This is not a statement of thelaw. If you have any questions contact yourlocal Assessor. You may also wish toconsider taking professional advice from asolicitor or chartered surveyor. If you wouldlike advice on professionally recognisedrating advisers, call the Royal Institution ofChartered Surveyors Contact Centre on 0870333 1600, or they can be contacted by emailat contactrics@rics.org. More information isalso available on their website atwww.rics.org and a facility to search for alocal surveying firm is available atwww.ricsfirms.com.

Assessors are responsible for the valuation ofproperty for non-domestic rating purposes.In carrying out their function they are entirelyindependent of both local and centralgovernment and reach decisions inaccordance with applicable statute and caselaw. Economic circumstances in each areawill affect rateable values to the extent thatthey affect the rental evidence used by theAssessor in setting rateable values at thestatutory date.

Although the valuation appeal system isgoverned by regulations, sometimes theprocedures may vary locally. If you appeal,the Secretary to your local Valuation AppealCommittee (VAC) or Panel will be able toexplain these, as will your local Assessor.

How to appealIf you do not agree with the valuation set foryour property and wish to appeal, you shouldwrite to, or email, the Assessor at theaddress on your Valuation Notice, the appealwill be acknowledged by the Assessor.

It will assist if you include in your letter ashort explanation of why you think yourvaluation is incorrect and what you think thevaluation of your property should be. Youmay also wish to provide some supportingevidence, such as the current rent passing inrespect of your property. The Assessor willbe happy to discuss this with you, and anyinformation you provide will be dealt with inaccordance with the Data Protection Act.

If you want to compare the valuation of yourproperty with others you can inspect thevaluation roll for your area, which can beseen at the Assessor’s office. Rateablevalues of non-domestic subjects acrossScotland can also be found online at theScottish Assessors Association Portal atwww.saa.gov.uk. This website also containsinformation on the principles of valuation andpractice notes which will help explain howthe rateable value for your property has beenset.

You can also appeal online by going to theAssessors portal at www.saa.gov.uk andentering the address or postcode for theproperty whose value you wish to appeal.Once you have found the individual record forthe property concerned, on the bottom rightof the page click the “make an appeal” button,which will direct you to an online form.

General information on appeals can be foundon the Assessors website atwww.saa.gov.uk/valuationappeals.html.

You do not have to pay any fee for lodging anappeal.

You must continue to pay your rates bill untilyour appeal is decided or you may be liableto recovery action by the council. If yousucceed in your appeal and your rates bill isreduced, you will receive back anyoverpayment and may receive interest on theamount you have overpaid.

Time limits for appealsYou may lose your right to appeal if you donot do so within the time limits. The last datefor lodging an appeal is 30 September 2010or within 6 months of the date of issue of theValuation Notice, whichever is later.

If you are a new proprietor, tenant oroccupier, you may appeal against thevaluation in force when you took over theproperty, but you must do this within6 months of acquiring the interest in theproperty. The Assessor may ask you toproduce documentary evidence of the dateyou acquired the property (e.g. copy of thelease or disposition etc.).

If your property has been affected by a“material change of circumstances”, which isdefined in the Valuation Notice, you mayappeal at any time while the valuation roll isin force, i.e. from the roll being made up atthe 2010 revaluation, until 31 March 2015and for 6 months thereafter.

You and the AssessorAt any time after you have lodged an appealyou can continue to discuss your case withthe Assessor on an informal basis to try toreach an agreement. If an agreement isreached then it will be put into effect andyour appeal will be treated as withdrawn.

If you cannot reach agreement, your appealwill be heard in due course by the ValuationAppeal Committee for your area.

The Valuation Appeal Committee (VAC)The VAC which will consider your case will bechosen from a panel of local peopleappointed by the Sheriff Principal in yourarea.

The VAC will be made up of a chairpersonand between 3 and 6 members. They are allcompletely independent of the Assessor andyour local council and have no priorknowledge of your case or that of theAssessor. It is for you to present your case asfully as you can in the course of yourevidence before the VAC.

The VAC is assisted by a paid secretary, whois usually a solicitor. The secretary does nottake any part in reaching a decision in yourcase but is there to advise the VAC on legalmatters and may take part in the hearing.

Lands Tribunal for ScotlandIf you think that your appeal is complicated,or highly technical, or raises major questionsof principle or law, you may wish to consult achartered surveyor or solicitor before askingthe VAC to refer your case to the LandsTribunal for Scotland. More information onthe Lands Tribunal for Scotland can be foundat www.lands-tribunal-scotland.org.uk/.

If you would like your appeal to beconsidered by the Tribunal you should applyas early as possible and not later than 14 daysbefore your case is due to be heard by theVAC and not later than 6 months before thedisposal date for the appeal.

The last date for the disposal of appeals fromthe 2010 revaluation is 31 December 2013.The last date for the disposal of otherappeals may be different. If you are in doubt,please contact the Assessor.

You must write to the VAC and explain whyyou think your appeal should be referred tothe Tribunal and you must send a copy ofyour application to the Assessor. TheAssessor will make comments on yourapplication and you will receive a copy ofthem.

The Assessor may also ask the VAC to referyour appeal to the Tribunal. If you plan to askfor your appeal to be heard by the Tribunalyou may wish to discuss this with theAssessor because, in some cases, it ispossible to make a joint application.

If the VAC agrees, it will pass your appeal tothe Tribunal and will tell you it has done so. Insome cases, legal aid is available for appealsbrought before the Tribunal.

You should make any application to theScottish Legal Aid Board at the addressbelow.

The SecretaryThe Scottish Legal Aid Board44 Drumsheugh GardensEdinburghEH3 7SWwww.slab.org.uk

If the VAC does not agree to pass yourappeal to the Tribunal it will write to tell you.You can appeal against the decision direct tothe Tribunal up to 21 days after receivingnotice from the VAC.

If the Tribunal does not agree to accept theappeal, your case will be decided by theVAC.

Withdrawal of appealsIf you decide to withdraw your appeal youshould write to the Assessor.

If the Assessor accepts that the reasons youhave given in lodging your appeal are well-founded, and agrees to accept the value youhave suggested, your appeal is considered tobe withdrawn. Alternatively, the Assessormay offer to reduce the valuation. If youaccept this offer you would withdraw yourappeal. The Assessor will issue a revisedvaluation notice and you will have no furtherright of appeal, unless there is a subsequentchange in value or material change ofcircumstances.

Valuation Appeal Committee (VAC)Hearings

Method of appealYou can present your appeal personally at ahearing of the VAC, or you can berepresented at the hearing by someone else.You can also ask to have your appeal dealtwith by written representations without ahearing if the Assessor and the VAC agree.

Notice of hearingAt least 70 days before the VAC is toconsider your appeal, the secretary will sendyou a notice giving details of the date, timeand place of the hearing. You will receive thisat least 6 months before the time limit for theVAC to dispose of appeals. The details willalso be advertised at the Assessor’s office.

If you are unable to attend on the appointeddate you should contact the secretary assoon as you receive the notice. The VAC willonly agree to change the date if it considersthat you have a good reason. The VAC canpostpone or adjourn a hearing at any timebut it will give you as much notice aspossible.

VACs sometimes wait to deal with relatedcases together, which is to everyone’sbenefit. If you think there is any unreasonabledelay in setting a date for your hearing, or ifthe date which is fixed is too far ahead, youmay suggest a date at least 70 days in

advance for your hearing. If the VAC refusesto hear your appeal at the time you suggestyou will be told the reason.

Exchange of informationBefore your appeal is heard, you mustcomply with any requests from the Assessorfor information.

You may also be asked to give writtenconfirmation that you intend to carry on withyour appeal. You must reply within the timelimit which will be given to you, or yourappeal may be dismissed.

Grounds of appealYou must send the Assessor a writtenstatement of your grounds of appeal at least35 days before the hearing.

You must state clearly why you think thevaluation is wrong. You must also give analternative valuation which you think shouldbe substituted.

Within 14 days of receipt the Assessor mustsend you a statement of the grounds onwhich the valuation of your property hasbeen arrived at.

Comparisons with other propertiesIf you have decided to appeal because youthink the value of your property is too highcompared with the values of other properties,you must also send the Assessor a list ofsuch comparable properties at least 21 days

before the hearing. Details about rateablevalues of non-domestic subjects in Scotlandcan be found on the Scottish AssessorsPortal at www.saa.gov.uk/.

You should include all the properties youwish to tell the VAC about. Any otherproperty mentioned at the hearing will onlybe considered if the Assessor agrees or if theVAC allows it to be considered; even in suchcircumstances the appeal may require to bepostponed to a later date to allow time for fullinformation about such properties to beobtained.

At the same time, you can ask the Assessorto send you a list of any properties which willbe used to support the valuation in the roll.The list must be sent to you at least 14 daysbefore the hearing.

If the Assessor sends you a list of propertiesfirst, you must send your list to the Assessorat least 14 days before the hearing.

You can also ask the Assessor at any time upto 56 days before the hearing to send you alist of any plant and machinery included inthe valuation of your property.

You do not have to wait until you receivenotice of the date of the hearing to send yourstatement of grounds of appeal and any listof comparable properties to the Assessor.You can send them earlier, but you mustmake sure that the Assessor has theinformation within the time limit.

Representation at the hearingYou may give your evidence to the VACyourself or you may be represented by anyperson, whether or not legally qualified.However, you cannot be represented bysomeone who is a member of the panel fromwhich the VAC is drawn.

If you want to be represented by someoneelse you should notify the secretary of theVAC and give your representative’s name.The VAC can refuse to allow any particularperson to represent you if it has a goodreason for doing so. Ensure that anyrepresentative you appoint is completelyfamiliar with the details of your case.

The Assessor may appear in person to giveevidence or evidence may be given by amember of the Assessor’s staff. In somecases the Assessor may be represented bycounsel.

Record of evidenceIf you think it is important, you can arrangefor evidence given at the hearing to berecorded. You must tell the VAC before thehearing and you must pay the cost of therecording.

The secretary may be able to tell you if theAssessor will be recording the hearing. If so,if you request it, the Assessor will be able toprovide facilities for you to be able to hearthe recording.

If you or the Assessor asks for your appeal tobe referred to the Lands Valuation Appeal

Court (see later), the VAC may ask you toprovide a certified transcript of any recordingyou make. The VAC will pay for any transcriptit requires.

Failure to appearIf you or your representative fails to appear atthe hearing your appeal may be dismissedand the VAC will notify you.

If you have a good reason for not appearing,you may write to the VAC within 14 days ofreceiving the dismissal notice – or a longerperiod if the VAC accepts there are specialcircumstances – and ask for your case to beheard at a later date.

If the VAC agrees, you will receive at least7 days notice of the date, time and place ofthe new hearing.

At the hearingMembers of the public are normally allowedto attend appeal hearings. If you, or someoneelse concerned with your appeal, has a goodreason the VAC may decide to hold thehearing in private.

The chairperson of the VAC is responsible forthe way in which the hearing is carried outand will ask you to present your case. Innormal circumstances you will be asked topresent your case first but the VAC candecide who will be heard first if this is anissue between the parties.

Oral evidenceIf you chose to give oral evidence, you maybe asked to take an oath or “affirm” that whatyou say in your evidence will be the truth.

You should limit your evidence to giving thefacts you would like the VAC to consider. TheAssessor, or the Assessor’s representative, orany member of the VAC, may ask youquestions on your evidence.

If you decide to call witnesses to giveevidence to support your case, you shouldask them questions which will bring out thefacts you would like the VAC to consider.Your witnesses may also be questioned bythe Assessor, the Assessor’s representativeor any member of the VAC.

You will be given an opportunity to questionthe evidence put by the Assessor andanyone else involved in your case. You mayalso question any witnesses called to giveevidence to support the Assessor’s case.After all of the evidence has been heard youwill be invited to summarise your case and tocomment on the Assessor’s evidence but youcannot introduce new evidence at this stage.

Written evidenceIf you would prefer not to give oral evidenceyou may provide written statements. If youdo, you will have to supply a copy in advanceof the hearing to the Assessor.

The Assessor can object to the writtenstatement, in which case the VAC will decideif it can be accepted. Even if you put your

case in a written statement, you will still beable to question the case put forward by theAssessor.

Disposal by written representationsYou may decide that you do not want toattend the hearing at which the VAC willconsider your case. You may feel, forexample, that you can state your case clearlyin a letter.

If you prefer to have your case dealt with bywritten representations you should tell thesecretary to the VAC who will consult theAssessor. If the Assessor agrees, you willhave four weeks in which to send your caseto the secretary. If your appeal relates tomatters of value you must state the valuationwhich you consider should be entered in theroll and the grounds on which it has beenarrived at.

If the Assessor disagrees with the grounds ofyour appeal, you will be told the reason andyou will have 4 weeks to comment on it. TheAssessor will then have another 4 weeks toreply and at the end of that period, thesecretary will report to the VAC.

The VAC may decide to a) ask for furtherinformation, b) order that your appeal shouldbe dealt with at a hearing or c) agree toconsider your case by writtenrepresentations.

If you wish, you can withdraw your case afterreading the Assessor’s comments or at anytime before the VAC reaches a decision.

DecisionThe VAC may tell you its decision at the endof the hearing, or at an adjourned hearing, oryou may be told later in writing. Where adecision is given orally, you will receivewritten confirmation of the decision within3 days. In all cases you will also receive, inwriting, the reasons for the decision.

Appeals against the VAC’s decisionIf you are not satisfied with the VAC’sdecision you may appeal to the LandsValuation Appeal Court. The Assessor alsohas a right of appeal to the court.

If you decide to appeal, you should writewithin 14 days to the secretary asking theVAC to prepare a “stated case” forpresentation to the court. The VAC will drawup the “stated case” based on the factsestablished at your hearing.

When you write to the secretary, you muststate your grounds of appeal and send acopy to the Assessor. You will be sent a copyof any answers the Assessor may make toyour grounds of appeal.

To assist with the preparation of your appeal,you can ask the secretary for a transcript ofany recording of the evidence which mayhave been made at your hearing. There willbe no charge for a transcript.

The secretary will send a draft of the “statedcase” which the VAC proposes to make toyou and to the Assessor.

You can write to the secretary to ask foramendments to be made to the “statedcase” before it is put before the court.

The Assessor can comment on your requestin the same way and you can comment onany amendments to the “stated case” whichthe Assessor may ask for.

If the VAC agrees, the “stated case” will beamended and finalised. The secretary willthen provide you with the principal signedcopy of the case and any written statementsor other documents lodged at the hearing.You should then lodge the case and evidencetogether with the relevant number of copies(as required by the court) in the Court ofSession. The case will then be listed forhearing by the Lands Valuation Appeal Court.

Legal representationYou may wish to seek legal advice beforedeciding to ask for your case to be referredto the Lands Valuation Appeal Court. Youmay be entitled to legal aid, includingrepresentation at the court hearing.

Finding out moreThese appeal procedures are set out in detailin The Valuation Appeal Committee(Procedure in Appeals under the ValuationActs)(Scotland) Regulations 1995 (S.I. No.572/1995): www.opsi.gov.uk/si/si1995/uksi_19950572_en_1.htm. Copies may beobtained at main public libraries and can bepurchased at the Stationery Officebookshops (www.tso.co.uk). If you would likeadvice on professionally recognised ratingadvisers, call the Royal Institution ofChartered Surveyors Contact Centre on 0870333 1600, or they can be contacted by emailat contactrics@rics.org. More information isalso available on their website atwww.rics.org. The Contact Centre will alsoprovide the enquirer with the opportunity tobe referred to a local specialist who willprovide 30 minutes of free advice.

Procedure in appeals to the Lands ValuationAppeal Court is governed by regulations(Acts of Sederunt) made by the Court ofSession.

For more information on the lands Tribunalfor Scotland please visit –www.lands-tribunal-scotland.org.uk.

For more information on the Assessors, visitwww.saa.gov.uk.

This guidance is available on the ScottishGovernment’s website atwww.scotland.gov.uk/revaluation.

© Crown copyright 2009

ISBN 978-0-7559-8163-2

RR Donnelley B61966 10/09

w w w . s c o t l a n d . g o v . u k