Non Domestic Rates

Non Domestic Rates

Non Domestic Rates, also known as Business Rates, are collected by local authorities and are a form of local taxation which requires those who occupy non domestic properties to contribute towards the cost of local services.  The rates are pooled by the Scottish Parliament and redistributed to local authorities according to the number of people living in that area.  These monies, together with revenue from council tax payers, revenue support grants provided by Government and certain other sums, are used to pay for the services provided by The Highland Council.

Revaluation 2010

Every five years non domestic properties are assessed, and given new rateable values. The current revaluation came into effect on 1 April 2010 which means non domestic properties had their rateable values reassessed based on a valuation date of 1 April 2008. Revaluation is about a fair distribution of the burden of taxation.

The key purpose of revaluation is to update rateable values of non-domestic properties to reflect more up to date rental levels. This provides for a closer, fairer link between property values and the amount of rates paid by individual ratepayers.  There will be no change for some properties whereas the majority of non domestic properties will have a new rateable value from 1 April 2010.

The revaluation is necessary because the relative value of non domestic property changes.  However, the Government will not raise any more income in 2011 due to revaluation alone.