February 7, 2017 Michael PETTIFER

Is your business ready for the new business rates assessment?

Randell_blue_logoOverview
Whether your business operates from a retail premise, industrial unit or an office block you are eligible to pay Business Rates. In essence Council Tax for commercial premises. The Central Government annually charge commercial properties across England and Wales with property tax. This is known as the Business Rate, it is collected by the local council.

Calculations
There is a simple sum of working out your Business Rates. The liability for each owner is calculated by multiplying the rateable value (RV) for the property by the national uniform business rate (UBR) which will be set at (£0.48 for 2017/18). The rateable value is assessed by the Valuation Office Agency (a part of HM Revenue and Tax). After a long gap of 7 years, the next national re-assessment will take effect from 1st April 2017.

For the 2017 revaluation, the rateable value for each property should be roughly equal to its annual rental value on 1st April 2015 and calculated by reference to its physical condition on 1st April 2017

Effects on you as a business.
Currently the rateable values are assessed under the 2010 scheme which was by reference to the property on 1st April 2008. The 2017 Scheme scheduled will review the rental vales on the properties as of 1st April 2015.

There have been significant movements in rental value over this 7 year period. In 2008 the Country was entering a period of recession. The commercial property market was commencing its downward cycle. However all that had changed by April 2015. Economic conditions had improved: the property market was buoyant and rising.

The draft 2017 Rating List published by the Valuation Office Agency on 30th September 2016 indicates a significant increase in the rateable values of commercial property.

The future.
The Government will publish its scheme for transitional relief (intended to provide a cushioning affect for those taxpayers suffering a significant change in tax liability) in the late Autumn and will confirm final rateable values shortly before the new Scheme commences on 1st April 2017. No appeals will be allowed before then.

Who should I contact for advice?
Randell Commercial work closely with expert consultants in order to minimise our clients Business Rates liability. Please contact one of our surveyors should you require any assistance.

office@randellcommercial.uk 
020 7135 2033