Autumn Budget – 22nd November 2017 – Business Rates

Autumn Budget – 22nd November 2017 – Business Rates

Three Yearly Revaluations
From 2022, revaluations will take place every three years rather than the current quinquennial review. The change to a self-assessment rating system has not been mentioned and it is probable that this option will be shelved.
RPI to CPI from 1st April 2018
The switch from RPI to CPI-based as the annual adjustment of the business rates multiplier (UBR) will come into effect from 1 April 2018 rather than from the 1st April 2020.
The multiplier will now increase by 3% rather than 3.85%. The Chancellor predicts small business will save £2.3 billion over five years.
Transitional Relief will continue to be factored into the rates bill and may affect any potential savings.
‘Staircase Tax’ (Mazars) to be Reversed
The ‘staircase tax’ (Supreme Court decision in 2015 Woolway -v- Mazars SCUK 2015) is to be removed. Following the Supreme Court’s decision in Mazars, a ratepayer occupying multiple floors in a building or adjacent buildings (not intercommunicate internally) have had their property reassessed since 2015 as separate hereditaments (properties). This has in most cases increased the rate liability.
Once the new legislation is introduced, ratepayers will be able to ask the Valuation Office Agency (VOA) to have their original rate bill reinstated and backdated, probably to 1 April 2010; this should include those who lost small business rate relief (SBRR). Draft legislation is expected shortly.
Public House Reduction Extended for 2018/19
Public houses with a rateable value below £100,000 will enjoy an extension of the up to £1,000 reduction on their rate bill for a further year; into 2018-19.
Note: Reported Budget decisions are subject to the normal introduction into law through the Finance Act. The above details may therefore change before this process is completed.

2017-11-24T00:28:53+00:00 November 23rd, 2017|

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