Business Rates Test Case Clears First Hurdle
Posted on 29/11/11
Potential Major Rates Savings From Material Change of Circumstances
A recent decision by the Fife Valuation Appeal Committee in relation to Mercat Shopping Centre in Kirkcaldy could have a wide ranging positive impact on companies’ rates bills in the coming years.
James Barr business rates team have been actively lobbying for the Scottish Assessors to acknowledge that the onset of the economic recession, which occurred post April 2008, and coincided with the valuation ‘tone date’ for the 2010 Rates Revaluation, has had a material effect on rental values and construction costs in the period leading up to publication of the 2010 rateable values. Protective appeals have been lodged on behalf of all our Clients under recognised Material Change of Circumstances (MCC) rating legislation and whilst it is anticipated that the Scottish Assessors will appeal the Committee’s decision to the Lands Valuation Appeal Court (LVAC), if upheld, James Barr expect to negotiate significant reductions in Rateable values across most sectors through the MCC appeals.
The Fife Assessor has until 10th December to lodge an Appeal against the Mercat Decision and it is likely that a hearing before their Lordships at the LVAC will not be heard until Spring 2012.
We will continue to update our clients with any further developments but view this latest news as a positive decision in favour of the business ratepayer. In the meantime, we advise clients to continue their rate payments as normal.
For more information, please contact Steven Dalton