Are you Ready for the 2017 Rating Revaluation

Key Facts

  • The Amount you pay in Business Rates will Change in 2017
  • Small Business Rates Relief is Changing (For the Better!)
  • Your Rates can go up as well as down
  • What are the next steps for you with this Rating Revaluation

What is Changing?

  • Rating Revaluation. The last Business Rates assessment was in 2010, this was based upon rental evidence on or around the revaluation date of the 1st April 2008. The Revaluation is in 2017 and will be based upon rental evidence on or around the revaluation date of the 1st April 2015. As there has not been a Rating Revaluation for 7 years, and the last reassesment was based on rental evidence on or around 1st April 2008 (height of the market for many sectors) we are expecting substantial changes across all sectors.
  • Small Business Rates Relief – A significant proposed change for next year is for “Businesses with a property with a Rateable Value of £12,000 and below will receive 100% relief. Businesses with a property with a Rateable Value between £12,000 and £15,000 will receive tapered relief,” according to the last Budget Statement.
  • Rating Multipliers for 2016/17. 48.4p in the £ for small businesses, 49.7p in the £ for larger properties. (Small businesses defined as a Rateable Value under £18,000)

Warrington

The analysis of 2017 rating revaluation of commercial property within Warrington has revealed that a large proportion of rating assessments have been reduced. In such cases the assessments should still be reviewed to assess whether the reduction is to the correct level. A significant proportion of the commercial property has seen an increase in the Rateable Value particularly in the industrial sector.

Warrington Rates Revaluation

Warrington Golden Gates

What Next?

There is a three stage process for challenging these assessment. This is a new system that is being implemented by the government to prevent the previous issue of too many rating appeals being submitted. The outline of this process is as below, although full details of the process have not yet been released.

  • Check – The initial check is to establish whether the basis of the valuation is correct. This mainly applies to the size of the property. If part of your property has been demolished or added to it will affect your valuation and is something to consider before challenging.
  • Challenge – This is the second stage check which will look at rental evidence and a calculation of a revised Rateable Value. If an agreement cannot be reached then there will be an option to go to 3rd and final stage of an appeal.
  • Appeal – It has been suggested that for the first time there will be a Government fee in order to Appeal the decision made in the challenge stage. The Appeal will be decided by the Valuation Tribunal and there will be a very limited ability to add additional evidence to that used at the challenge stage. This is a key change which attempts to prevent bogus appeals being lodged and ensures that more work will need to be carried out at the check and challenge stages rather than waiting to get to tribunal.

What Can You Do?

You can check the information is correct by visiting the Valuation Office’s website. This website provides the current Business Rates and the proposed Business Rates for 2017 (https://www.gov.uk/correct-your-business-rates). This will confirm the change in your Rateable Value coming into affect on the 1st April 2017.

By entering your address you will be able to locate your property. On the page with property details on you initial checks can be made into whether the assessment looks correct. If you think your building is 1,000 m² and the website lists it as 1,500 m² there may be an issue that needs investigating. The next question is, does your Rateable Value differ greatly to the rent you pay?

If this all sounds too complicated, Morgan Williams Chartered Surveyors can investigate for you. We will happily have an initial conversation with you to discuss your options. If we think there is scope for challenge then we can discuss an approach to a challenge.

Please note that in many cases our advice will be to “do nothing!”. The importance of not appealing your business Rates is very significant in certain circumstances. If there are substantial improvements to the property or even an extension to the building. These factors may have not previously been incorporated within the Rateable Value. When appealing the Rating Assessment in these circumstances there is potential for the Rateable Value to increase dramatically. There have been many instances where less scrupulous “Rating Surveyors”offer to appeal. These have historically come from unqualified persons operating from a call centre. Often there is not even an inspecting or any consideration given to the proposal. An appeal is submitted online opening the door for a potential increase in Rates in the circumstances referred to.

Get in Touch

Fill in your details on the Contact Us page or email us on enquiries@morganwilliams.com. We will need your name and contact number. If you could include property details with your information we can carry out preliminary checks before we call you back.

Rating Revaluation 1st April 2017 - How does it affect you?


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