Business Rates revaluation: what is happening?

• A business rate revaluation is due to come into effect in April 2017 based on premises’ rental value in April 2015.
• A revaluation normally happens every 5 years, although the last revaluation took place in 2010.
• Actual Business rates payable are based on a multiplier which is set by central government. At the moment this is:
  • 46.7p for every £1 of rateable value for small businesses (for business with a rateable value up to £51,000) - this multiplier has been reduced from the current level of 48.4p.
  • 48p for every £1 of rateable value for other businesses. This multiplier has been reduced from 49.7p.
• Some businesses are also eligible for rate relief:
  • Business with a rateable value under £6,000 will pay £0 business rates
  • Businesses with a rateable value between £6,001 and £12,000 will pay tapered relief from 100% relief at £6,000 to 0% relief at £12,000
  • Businesses with a rateable value under £18,000 pay the small business multiplier.

What is happening from April 2017?

• Rateable values have been revised for all businesses (with some up and some down).
• Business with a rateable value under £12,000 will pay £0 Business rates.
• Businesses with a rateable value between £12,001 and £15,000 will pay tapered relief from 100% at £12,000 to 0% relief at £15,000.
• Businesses with a rateable value under £51,000 will pay the small business multiplier.

Transitional Relief arrangements

• The government has introduced transitional arrangements designed to cap the increase paid by companies depending on their size and percentage increase in rateable value.

What does this mean?

• The impact for each business is different.
• Businesses can see the proposed change in valuation of their premises here: https://www.tax.service.gov.uk/view-my-valuation/search
• Businesses can appeal the revaluation if they feel it is incorrect. Companies are likely to start offering to undertake appeals (for a fee) – you can also do this yourself. Grounds for appeal are:
  • the valuation was wrong
  • a change to the property or area should be shown in the rateable value, eg the property’s been demolished or is now a domestic property
  • a change made to the valuation by the Valuation Office Agency (VOA) is wrong, or hasn’t been made
  • the property’s been incorrectly split into more than one listing, or combined with others into a single listing
• More information on the appeals process is here: https://www.gov.uk/business-rate-appeals/types-of-appeals