The Act Part 2 – Administration and enforcement of non-domestic rates Section 10 – Proposals to alter, and appeals against, valuation roll
46.Section 10 amends the 1975 Act to introduce a new mechanism for ratepayers to challenge entries in the valuation roll, before making an appeal to the valuation appeal committee.(13)
47.At the time of publication of these Notes, section 3 of the 1975 Act gives proprietors, tenants and occupiers of lands and heritages the right to appeal to the valuation appeal committee against an entry in the valuation roll in various circumstances. Subsection (2) allows an appeal to be made where the proprietor, tenant or occupier receives a valuation notice from the assessor, where the assessor makes or alters an entry. Subsections (2A) and (2B) allow a new proprietor, tenant or occupier of lands and heritages to appeal against the entry in the valuation roll for the lands and heritages within 6 months of becoming the proprietor, tenant or occupier of them. Subsections (4) and (4A) allow a proprietor, tenant or occupier to appeal against the entry if there is a material change in circumstances, or on the grounds that there is an error in the entry.
48.Section 10(3)(a) and (b) of the Act repeals the provisions about appeals in section 3 of the 1975 Act, and subsection (4) replaces them with new sections 3ZA and 3ZB, providing for a new stage for ratepayers to propose changes to the valuation roll, and for appeals following the making of a proposal.
49.New section 3ZA(1) allows each of the proprietor, tenant and occupier of lands and heritages to separately make a proposal to the assessor to alter the entry in the valuation roll for those lands and heritages. Subsection (2) sets out the circumstances in which a proposal can be made. They are essentially the same as the circumstances in which an appeal can be made under section 3 at the time of publication of these Notes (see paragraph 47), although the time limits for making a proposal will be set out in regulations under subsection (7) rather than in section 3ZA itself.
50.New section 3ZA(3) prevents a person from making a proposal in relation to an entry in the valuation roll as made up in a revaluation year if the entry reflects the terms of an agreement between that person and the assessor.
51.Section 3ZA(4) essentially replicates section 3(2B) of the 1975 Act, and provides that a new proprietor, tenant or occupier can make a proposal regardless of whether a previous proprietor, tenant or occupier reached an agreement with the assessor about the entry in the valuation roll for the lands and heritages, or challenged it through a proposal or an appeal.
52.Section 3ZA(5) requires a proposal to be made in writing, and to set out the changes that the person making it wants the assessor to make to the entry. For example, if the proposal is concerned with the rateable value shown in the entry, the proposal must set out the amount that the person making the proposal thinks is the value that should be shown in the entry.
53.Under subsection (6), the assessor can decide to alter the entry as suggested in the proposal or as subsequently agreed in writing with the person making the proposal, decide to alter the entry other than as suggested by or agreed with that person (and may either increase or decrease the value included in the entry), or decide not to alter the entry at all. If the assessor decides to alter the entry other than as suggested by or agreed with the person who made the proposal, the person who made the proposal can appeal to the valuation appeal committee under section 3ZB(1)(a). The person can also appeal under that section if the assessor decides not to alter the entry in the valuation roll at all.
54.Subsection (7) enables the Scottish Ministers to make provision in regulations about various matters in connection with proposals under section 3ZA. These include time limits for making a proposal, the form in which it is to be made, the information and documentation that must be supplied with the proposal, notices that the assessor is to give to the proposer and other persons with an interest in the lands and heritages in question (for example, another person who is the proprietor, tenant or occupier of the lands and heritages), fees that may be payable for making a proposal, and when a decision by the assessor to alter an entry in the valuation roll is to take effect.
55.By virtue of section 3ZA(10), regulations under subsection (7) are subject to the negative procedure unless they make provision about fees, in which case they are subject to the affirmative procedure. Regulations making provision about fees also require to be consulted upon under subsection (8).
56.New section 3ZB makes provision about the making of appeals to the valuation appeal committee following the making of a proposal. There is no right to appeal under section 3ZB unless the appellant has first made a proposal.
57.Section 3ZB(1)(a) allows an appeal to be made to the valuation appeal committee against an assessor’s decision under section 3ZA(6)(b) to alter an entry in the valuation roll in a way different to that proposed or agreed with the person who made the proposal or under section 3ZA(6)(c) not to alter the entry at all. There is no right of appeal if the alteration to the entry in the valuation roll is made under section 3ZA(6)(a) (that is, where the assessor decides to alter the entry as proposed, or in line with a subsequent agreement in writing between the assessor and the person who made the proposal).
58.Section 3ZB(1)(b) allows an appeal to be made to the valuation appeal committee if the assessor does not determine the proposal within a particular period (to be set out in regulations under section 3ZB(7)(a)). Subsection (2) provides that in this case the appeal is to be treated as if it were an appeal against a decision of the assessor not to alter an entry in the valuation roll following the making of the proposal. This means that the issue under consideration in the appeal is whether the entry in the valuation roll should be changed (and not, for example, whether the assessor’s failure to make a decision in the allotted time was justifiable).
59.The period within which an appeal is to be made in either of these situations will be set out in regulations under section 3ZB(7)(a). An appeal cannot be brought after the end of the period, and the valuation appeal committee does not have discretion to extend the period (section 3ZB(3)(a)).
60.Section 3ZB(3)(b) requires the appellant to obtain the permission of the valuation appeal committee in order to withdraw an appeal after it is made. This is the case even where the assessor and the appellant have reached an agreement about how the entry in the valuation roll should be altered after the appeal is made.
61.Section 3ZB(4) sets out what the committee is to do on an appeal. The committee is to decide what alterations the assessor is to make to the entry, if any. Any alterations may be the same as those contained in the proposal, or the committee may decide that different alterations should be made.(14) The committee may in particular decide that the rateable value of the property is to be increased or decreased.(15)
62.Section 3ZB(5) and (6) replicates the effect of parts of section 3(4) of the 1975 Act (which is repealed by section 10(3)(b) of the Act). It provides that, if a proposal has been made on the grounds of a material change in circumstances (i.e. a change affecting the rateable value of the property) and there is a subsequent appeal to the valuation appeal committee, the committee may decide that the entry is to be altered if it is established that the change in circumstances has materially reduced the extent to which the property can be beneficially enjoyed, even if the specific extent of the reduction in the property’s value cannot be proved.
63.Section 3ZB(7) enables the Scottish Ministers to make regulations in relation to the making of appeals under section 3ZB(1). The regulations may deal with matters such as the time limits for bringing and disposing of appeals, information to be included and documents to be submitted with appeals (for example, documentation in relation to the proposal under section 3ZA), circumstances in which the appeal may be brought only with the permission of the valuation appeal committee (for example, permission might be needed if the appellant does not have all of the relevant documentation), fees payable in connection with an appeal(16) and the procedures to be followed in an appeal (including the evidence that may be led).
64.Regulations under section 3ZB(7) are subject to the affirmative procedure if they make provision about fees, and otherwise are subject to the negative procedure (section 3ZB(10)). Regulations making provision about fees also require to be consulted upon under section 3ZB(8).
65.Subsections (2) and (3)(c) of section 10 of the Act adjust sections 2 and 3 of the 1975 Act in consequence of new sections 3ZA and 3ZB.
66.Section 10(2)(a) adjusts section 2(1A) of the 1975 Act to provide for the assessor to alter the valuation roll to reflect any decision of the assessor in relation to an entry in the valuation roll following the making of a proposal under new section 3ZA (while retaining the existing requirement to alter the valuation roll to reflect the outcome of an appeal, now under section 3ZB).
67.Section 10(2)(b) adjusts section 2(2)(cc) to ensure that the position in relation to alterations to entries in the valuation roll following a new person becoming the proprietor, tenant or occupier of lands and heritages is maintained – any such alterations following the making of a proposal by such a person (or an appeal in relation to such a proposal) will only apply from the date the person became the proprietor, tenant or occupier.
68.Section 2(3) of the 1975 Act permits the assessor to alter an entry in the valuation roll if, pending an appeal being dealt with, an agreement is reached about the entry. New subsection (3A) (inserted into the 1975 Act by section 10(2)(c)) limits this power, with the effect that an agreement reached between the assessor and the person who made a proposal in relation to an entry in the valuation roll after an appeal is made under section 3ZB will only result in the entry being changed if the appeal is also withdrawn.
69.Section 10(3)(c) adjusts section 3(5) of the 1975 Act. That section (as in force at the time of publication of these Notes) includes a requirement for the assessor to let an interested person know whether there is an appeal pending in relation to an entry in the valuation roll, if the person requests that information. That requirement is adjusted so that it will, following introduction of the new system explained above, apply both where a proposal under section 3ZA is pending and where an appeal under section 3ZB is pending.