THE 2017 BUSINESS B
usiness rates is one of the largest costs facing small businesses. Since 1 April 2010 these have been based upon
1st April 2008 rental values. The Government is currently undertaking a national revaluation of all non- domestic property. This will be called the ‘2017 Revaluation’, reflecting 1st April 2015 rental values. Requests for Information are being issued to collect evidence. Occupiers of non-domestic property could see a significant change in their Rateable Value (RV). Richard Page, Associate in Business Rates at Bilfinger GVA, has undertaken research indicating, broadly, subject to property type, London and the South East will see increases in value, whilst prime locations across the rest of the UK will see some variation, and secondary/ tertiary locations are likely to decline. Occupiers will be able to access their 2017 RV from October 2016. New business rate demands will be received from March 2017, and the revaluation will go live on 1 April 2017. This is the earliest date that the assessment can be formally challenged. Occupiers can freely access all data concerning their assessment for business rates, there is currently no charge to challenge the value. However, Page highlights that “the Government is considering
RATES REVALUATION – WHAT YOU NEED TO KNOW
RICHARD PAGE, ASSOCIATE IN BUSINESS RATES AT BILFINGER GVA UNRAVELS THE COMPLEXITY OF ONE OF THE MAIN COSTS OF ASSOCIATED WITH RUNNING A SMALL BUSINESS.
changes to the appeals system, which may result in a statutory charge being levied. At the moment it is entirely free to challenge your business rate assessment, but it can take up to 24 months to resolve a challenge.” However, the RV is only part of the story when it comes to business rates. The Government aims to collect the same amount of revenue from business rates year on year. The revaluation rebases RVs, but an aggregate fall in total national RV will result in an increase in the Uniform
Business Rate (UBR); the multiplier that is used to calculate business rate liability. Furthermore, transition, supplements and BID levies can alter the actual business rate liability. Thankfully, there has been a significant move to enhance support for small businesses through exemptions and reliefs. A Small Business for business rate purposes is an occupier of a single property with an RV of £12,000. Page adds, “in the 2016 Budget the Chancellor announced significant changes to Small Business Rate Relief commencing 1 April 2017. The change will exempt all Small Businesses from any business rate liability if they occupy one property with an RV under £12,000. From £12,000 to £15,000 RV there will be tapered relief.” The Government believes that up to 600,000 businesses will be removed from business rates. The business rates tax area is
extremely complex. Like all tax, expert advice can be extremely beneficial to ensure that businesses are being charged correctly. Page has been involved “in numerous scenarios where occupiers are entirely unaware of the exemptions and reliefs that they may be entitled to. Our experience and knowledge has proved invaluable to achieve the correct tax charges for many occupiers”. l
Bilfinger GVA has one of the largest team’s in the UK dealing with business rates. Over 60 surveyors operate from 12 offices across England, Wales, Scotland and Northern Ireland. Website:
www.gva.co.uk National Number: 08449 02 03 04
The Delicatessen Magazine 39
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