News

Business Rates Update

2017 Revaluation
The Draft 2017 Rating List updating all Rateable Values (RVs) went live at the end of September 2016 and will come into effect as of 1 April 2017. These values have been based upon the deemed prevailing rental values as at April 2015.

From initial research for the South West, RVs across all property types have risen by 3.5% on average primarily due to the industrial sector which has experienced an increase of 5.4% compared to retail which is down by 4.4% and office which is also down by 0.7%.

However the amount that businesses will actually pay has not been confirmed with the announcement of the new UBR multiplier due this winter. Many professionals estimate this multiplier will be similar to that currently prevailing, at between 45p-50p in the pound. In addition any decreases or increases will be limited by Transitional Phasing arrangements.

Small Business Rate Relief (SBRR)
One of the headline announcements has been the increase in the SBRR Scheme. Qualifying businesses will benefit from 100% rates relief if their RVs are below £12,000 with tapered relief up to £15,000 RV.

Appeals
As part of the Government’s overhaul of the Rating system, the appeals process has been altered with a new Check, Challenge, Appeal procedure. This new process is to substantially increase the time and complexity of the appeals system with far greater information and evidence required at the outset and strict timeframes to be adhered to. The draft regulations also state that a fee may be payable to lodge the appeal with the Valuation Tribunal and alterations to RVs by the Tribunal will only be considered if the existing RV is ‘outside the bounds of reasonable professional judgement’.

It is therefore more important than ever to seek professional advice.

Contacts:

Truro Office: Tom Neville MRICS 01872 261028 tomneville@scctruro.co.uk
Plymouth Office: David Hart FRICS 01752 670700 davidh@sccplymouth.co.uk
Phil Dickins MRICS 01752 670700 phild@sccplymouth.co.uk