The Act Part 2 – Administration and enforcement of non-domestic rates Section 3 – New or improved properties: mark in valuation roll
12.Section 3 inserts a new section 2A into the 1975 Act, in relation to entries in the valuation roll for newly built or improved properties. New section 2A will facilitate the identification of properties which may be eligible for rates relief for such properties (see section 14 of the Act).
13.Sections 1 and 2 of the 1975 Act require the assessor for each valuation area to make up a valuation roll for each year of revaluation. Following a revaluation, rateable values will generally remain unchanged until the next revaluation, unless property is altered or other changes take place. Each entry in the valuation roll relates to a different property (described in the legislation as “lands and heritages”).
14.New section 2A(1) and (2) requires an assessor to identify an entry in the valuation roll which is made or altered in relation to one or more new buildings, or as a result of the refurbishment or extension of one or more existing buildings. The assessor must do this by including a mark in the entry to show that it relates to newly built lands and heritages, or to improved lands and heritages.
15.Entries in the valuation roll are shared with the local authority when they are made or altered, under section 3(1) of the 1975 Act. The local authority will therefore be able to use this mark to identify properties which may be eligible for relief under regulations made under section 14(1) of the Act.
16.Section 2A(3) explains what is meant by an entry in the valuation roll which relates to newly built lands and heritages. This is an entry for property which includes buildings (or parts of buildings) none of which were previously included in any entry in the valuation roll or the valuation list (for council tax). Entries in respect of properties which previously existed but which did not require to be entered in the valuation roll by virtue of an enactment(4) are also excluded from the definition of newly built lands and heritages. For example, agricultural lands and heritages do not require to be entered in the valuation roll by virtue of section 7(3) of the 1956 Act. Lands and heritages converted from agricultural use to some other non-residential use may require to be entered in the valuation roll as a result of their conversion but would not count as newly built lands and heritages for the purposes of this section.
17.This means that any buildings or parts of a building in the entry must be newly built. The entry might be a new one in the valuation roll, or it might be one which is adjusted, and which previously related to land which had no buildings on it.
18.Section 2A(4) and (5) explains what is meant by an entry in the valuation roll which relates to improved lands and heritages. This is relevant where land in the valuation roll already has buildings on it. If the rateable value of the property is increased as a result of the construction or erection of other buildings, or parts of a building, or the refurbishment or extension of the existing buildings, the entry will be altered and become an entry which relates to improved property. Subsection (5)(b) provides that this does not apply where there is an increase in the rateable value which is attributable to existing properties in the valuation roll being combined, divided or reorganised, or to a change in the way in which the property is being used.(5)
19.Subsection (6) requires an assessor to remove a mark which has been included in an entry under subsection (2) the next time the entry is adjusted.
20.Subsection (7)(a) enables the Scottish Ministers to make provision in regulations about things that are or are not to be treated as a building for the purposes of section 2A. This power could be used where there is doubt as to whether certain structures would ordinarily be considered to be buildings.
21.Subsection (7)(b) enables the Scottish Ministers to modify the definition of “relevant increase” in subsection (5), i.e. to change the description of the increases in rateable value which result in a property being considered to be improved. This power might be used to keep pace with the application of the rates relief in regulations under section 14 of the Act, as the mark for improved lands and heritages will assist local authorities in identifying properties which might be eligible for that relief.(6)
22.Subsection (8) requires the Scottish Ministers to consult such persons as they think appropriate before exercising either of the powers conferred by subsection (7).
23.Subsection (9) allows the regulations to make different provision for different purposes (for example, to make different provision about things that are to be treated as buildings in different circumstances), and to make ancillary provision. Subsection (10) makes provision about the parliamentary procedure which applies to the regulations.