Prime location and general business rates set to rise in 2017

“While some rateable values have remained static or fallen in certain locations, the general trend throughout the country has been for an increase in business rates, especially in prime locations…”

The proposed rateable values (RVs) for the 2017 Business Rates Revaluation of Scottish non-domestic properties have been published, with the Rating Revaluation, which has been postponed since 2015, now set to take place on 1 April 2017.
These proposed RVs, which are based on 2015 valuations, will take effect from April.
According to Ryden, initial analysis shows value changes have fluctuated significantly across the country and across property sectors. Non-domestic rate payers in Aberdeen are the hardest hit with general large increases in RVs and, for example, industrial property increases by up to 40%.
The commercial property specialist says there has been a lowering of RVs for prime offices in Edinburgh and Glasgow by approximate 30% however prime retail in both cities has increased by around 20% to 30%.
It claims the industrial sector in Glasgow is showing a slight increase in business rates while Edinburgh’s industrial premises received a slight drop in value by around 10%.
Ryden says there has been a large increase in the RVs for car showrooms which have, in some cases, increased by 45%. Many hotels premises and licensed premises are also set to significantly increase, such as the Balmoral Hotel in Edinburgh, for example, which shows an increase of 36%.
The Scottish Government also revealed changes to the small business bonus scheme raising the threshold to obtain 100% relief to a rate-able value of £15,000.
However, there is no transitional relief scheme and this will have an immediate impact, especially on large businesses in Scotland as the full effect of the increase in RVs will be felt from 1st April 2017.
Moira Walker, head of rating at Ryden, said: “While some rateable values have remained static or fallen in certain locations, the general trend throughout the country has been for an increase in business rates, especially in prime locations. In particular, there has been large increases across the country for car showrooms, licensed premises and hotels.
“A property’s rate-able value is the only part of a rates bills that ratepayers can influence and attempt to change. Appeals can be lodged within six months of being issued with a valuation notice and no later than 30th September 2017.
“Even if a value decreases it may not have decreased by the correct amount. Commercial property occupiers should take professional advice on appealing their rate-able values as early as they can to ensure their rates bill is as low as possible.”
Examples of changes in RVs in Scotland
 
Rate Payer
 
2010 RV
 
2017 RV
 
% change
 
Jenners (House of Fraser), Princes Street, Edinburgh
£1,742,000
£2,215,000
+27%
Office (7), 120 Bothwell Street, Glasgow
£260,000
£181,000
-30%
House of Fraser, Buchanan Street, Glasgow
£2,025,000
£2,430,000
+20%
Royal Bank of Scotland Office HQ, Gogarburn, Glasgow Rd, Edinburgh
£5,950,000
£5,450,000
-8.40%
Retail Unit, 39 Lothian Road, Edinburgh
£38,000
£32,900
-13.4%
Industrial Unit at 5 Jubilee Court, Hillington, Glasgow
£95,000
£95,000
0%
Glasgow Audi Car Showroom, Hillington
£534,000
£780,000
+46%
Peter Vardy, 500 Hillington Rd, Hillington
£660,000
£975,000
+47%
Retail Unit at 342-348 Dumbarton Rd, Glasgow
£15,000
£16,300
+8.6%
Tesco Bank Offices at South Gyle, Edinburgh
£1,425,000
£950,000
-33%
Balmoral Hotel, Princes Street, Edinburgh
£1,724,000
£2,355,000
+36%
Crowne Plaza Hotel, 1 Congress Rd, Glasgow
£1,060,000
£1,164,000
+9%
Hotel, Hilton Garden Inn, St Andrew Street, Aberdeen
 £290,000
 £386,000
 +33%
Office, Endeavour Drive, Westhill
 £178,000
 £250,000
 +40%
Shop, Unit 4, Union Square, Aberdeen
 £169,000
 £363,000
 +114%
Warehouse, Upperton, Peterhead
 £134,000
 £180,000
 +34%

 

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Hannah Hamilton, who is a former Fife College student, is a reporter and assistant content editor for Scotland B2B, specialising in B2B news and features. She can be contacted via editorial@scotlandb2b-eastcoast.co.uk