Business Rate Advice.

The new rating list has seen significent increases in value especially of Industrial proporty.

The rateable value of a property is calculated based upon a hypothetical letting of the property in 2021 with a hypothetical annual lease in the market in April 2023; based upon rental values applicable in April 2021. From this rates payable are calculated by a Government multiplier which gives the amount to be billed to the occupier. There are various exemptions and reliefs to this bill and large increases and decreases are phased through transitional surcharges and reliefs.

Unlike previous revaluations, acceptance of an appeal against a new rate is no longer automatic and a reasoned case has to be made before an appeal is to be accepted by the Valuation Office. [VO] This, plus the time scales and cut off dates, does make it vital to act early as appeals cannot always be backdated even if the figure is obviously wrong. Other action may also be appropriate to reduce the overall bill. A 'check' has to be undertaken before any appeal can be made.

The reason for this change was the inefficiency of the former appeals system which is also open to abuse. Large numbers of appeals were lodged in a hope of negotiation of a reduction but not then seriously followed up and the appeal was eventually transferred to the Valuation Tribunal who dismisses it.

The whole property holding therefore needs to be assessed for business rates and reasoned appeals lodged if initial objections in the check is unsuccessful.

Please contact us for further advice on how we can minimalize you rate bills.