Business Rate Changes – England and Wales
2016 Budget – 16th March 2016
Small business rates relief scheme permanently doubled
The small business rates relief (SBRR) scheme has been permanently doubled with effect from 1 April 2017.
Qualifying small businesses who occupy properties with a rateable value of below £12,000 (up from £6,000) will pay no business rates at all from 1 April 2017. Over 600,000 businesses should benefit from this change.
Tapered relief scheme will apply for rateable values between £12,000 and £15,000; range 100% relief below £12,000 to no relief above £15,000.
Standard business rates multiplier threshold significantly increased
The upper threshold for the standard business rates multiplier (UBR) – currently used to calculate business rates on properties with a rateable value between £12,000 and £18,000 – has been substantially increased to RV £51,000, taking 250,000 smaller properties out of the higher rate.
Small Business Rate Supplement
The SBRR will be paid for by the SBR Supplement which will be applied to ratepayer accounts with RV £51000 plus.
Annual indexation switched from RPI to CPI
From 1 April 2020, the annual increase to the Uniform Business Rate (UBR) will be based upon Consumer Price Index (CPI) rather than the current Retail Price Index (RPI), bringing business rates in line with the main measure of inflation.
More frequent revaluations to be introduced
A three-yearly revaluation is proposed with the Government publishing a discussion paper in March 2016. If accepted, there may be another revaluation effective 1st April 2020. .
The above is based upon Government information from the 2016 Budget Statement. Information and policy is subject to ratification by Parliament and introduction into law by the Finance Act 2016. Until the Finance Act 2016 is approved and has received Royal ascent changes to the above are possible.
Miller Property Consultants – 18th March 2016
Osborne hands rates to councils
Chancellor George Osborne is to allow councils to set and keep funds raised from business rates.
The circa £26bn of funds raised through business rates in England and Wales are to be retained by councils.
This major policy move returns business rates to pre 1st April 1990 (pre 1990 Rating List) basis which will abolish the Uniform Business Rate (UBR) and raises the issues of
- Differential Multiplier per council
- Lower assessed council areas higher multiplier
- Review of Transitional Relief
- Council’s will become more pro-active in appeal process
- Council area rental evidence will become paramount
As with policy change, the devil will inevitably be in the detail.
Rating Revaluation – 2010 Rating List
New Rule effecting VT Listed Appeals Hearings after 1st January 2011
The rateable value of all business premises in England and Wales were revalued ahead of the introduction of the 2010 Rating List. The date of valuation (Antecedent Valuation Date –AVD) is the 1st April 2008 and the duration of the values in the 2010 Rating List is 5 years; 1st April 2010 to 31st March 2015.
- The Rateable Value in the 2010 Rating List will last for 5 year unless there is a Material Change of Circumstance (MCC)
- Any change to the 2010 Rating List assessment will back date to the 1st April 2010 or, if later, the date of any MCC
- Only one appeal per property per occupier unless there is a MCC
- The Appeal Process relating to evidence changed on all notice of hearing after the 1st January 2011. Non compliance with Practice Statement: Non-Domestic Rates (Rating List 2010): Disclosure and Exchange (VTE/PS/A7:28/07/2010 may result in appeal being struck out.
Miller Property Consultants will review the current rating assessment of your property and advice whether in our opinion the current assessment is excessive, correct or under assessed. If excessive, we will start the appeal process and negotiate with the Valuation Office Agency (VOA).