A rateable value based on a pre-recession tone date has recently
been allowed despite earlier rates appeal cases being based on
post-recession levels. Two decisions have been handed down by the
Inner House of the Court of Session (the highest civil court
outwith the Supreme Court) and are therefore not only binding on
Scotland, but "persuasive" under English law as well.
This may have a significant impact on rates paid.
The tone date chosen (1 April 2008) reflects a very different
economic market, and due to the global financial crisis that has
occurred since then, the values for most commercial properties in
Scotland are now actually lower than they were in 2008. By
way of example, if the market value of a commercial property as at
1 April 2008 was £100,000, and presently stands at
£50,000 due to the downturn in the market, the building
occupier may still be charged the commercial rates calculated on
the £100,000 valuation. This will squeeze profit
margins for
