THE CHANCELLORS AUTUMN STATEMENT INCLUDED
3 IMPORTANT CHANGES
TO THE BUSINESS RATES SYSTEM
1. Historically, the business rates revaluation has taken place on a five year cycle, but as many struggling business across the country will recall, there was seven years between the last revaluations. The result was that businesses were exposed to rating assessments and liabilities which were well above market rents.
In an effort to avoid a repeat of this, business rates revaluations will now take place every 3 years from 2022. This should make rateable values follow the actual rental market more closely, meaning business rates payments will be fairer.
2. The other significant change is in the way business rates bills will now be calculated. Whilst the rateable value (RV) is the valuation officers’ opinion of the market rent of a property, the multiplier is also a determining factor in the payable amount.
The multiplier has always been linked to inflation, the adopted measure of which was the Retail Price Index (RPI). In the budget it was confirmed that the measure of inflation used will be the Consumer Price Index (CPI) – typically the lower rate of inflation. The CPI inflation rate in December 2017 was 2.7% compared to 4.1% for the RPI. This should give a small but much needed relief to UK rate payers.
3. Finally, whilst not directly a budget issue business rates bills for the 2018/2019 financial year will soon be issued, these will show the new liability of your commercial property for the period.
Roger Hannah can undertake appeals against the rateable value of your premises and ensure that your bills have been calculated correctly as part of the process.
If you own or occupy a property and you feel you may be paying too much on your business rates, or unsure whether your rateable value is correct, contact our specialist Business Rates team for a free initial consultation.
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