The Valuation Office agency has published the Draft Rateable Values to be applied to commercial properties in England as from 1st April, 2017.
The Government claims that in the South East rateable values will fall on average by 2%, with retail premises benefitting the most. However, we have already encountered large increases resulting from the revaluation and it is therefore vital that each business ratepayer carefully considers its new rateable value.
At this stage, the draft figures cannot be formally challenged. However, clear factual errors can be brought to the attention of the Valuation Office with a view to rectifying the errors before the rateable values are finalised at the start of next year.
The Government are introducing a new appeal process after 1st April, 2017 and the details of which have yet to be finalised. However, the appeal process will be broken down into three stages, “Check, Challenge and Appeal” with a fee being charged for taking appeals to Valuation Tribunal. The new system represents a complete overhaul of the appeal process and at the moment it appears to the detriment of business rate payers.
The Government has just published a consultation document on the Transitional Arrangements to apply following the introduction of the new rateable values and limiting the annual increases/decreases in rates payable. The Government’s preferred option for properties with rateable values in excess of £100,000 is that increases should be capped at between 45% and 50% per annum over the first three years of the new Rating List and decreases at just 4.1 – 5.9%. The Transitional Scheme should be finalised later this year. We are also awaiting confirmation of the multiplier to take effect from 1st April, 2017.
In summary, these are all major changes associated with the Revaluation and which could have a significant impact on the overheads of businesses.
For further assistance and advice please contact our Rating Surveyors,
Mark Clancy, FRICS
Chris Ridge, MSc FRICS
James Gibb, BSc MRICS IRRV
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