HOW MUCH WILL YOU PAY ON 1 APRIL 2017? PLUS BUDGET UPDATE & CASE LAW
Welcome to the Newsletter, giving you the latest news and views on Business Rates.
As we prepare for the new Rating List to become affective on 1 April 2017, do you know how much will you pay on 1 April 2017?
To work it out, multiply your draft 2017 Rateable Value with the multiplier here (otherwise if you don't know it, click here to search the Valuation Office Agency website):
New Multiplier: 0.467 Small and 0.48 with supplement (depending on location)
Once you have calculated this figure, apply any Transitional Relief % applicable to your property (scroll down to the table at the bottom of the Newsletter). Otherwise, please contact us for any help you need.
On top of the new values, a new appeals system is being brought in: Check, Challenge, Appeal (see below New Appeal System).
If you have any property undergoing reconstruction, there was good news (see below Case Law: Newbiggin v Monk).
Finally, there were three further changes announced to business rates yesterday (see below 2017 Budget Update).
If you need more advice and to talk through the above, please don't hesitate to contact us and we'll have a more in depth look for you.
As we prepare for the new Rating List to become affective on 1 April 2017, do you know how much will you pay on 1 April 2017?
To work it out, multiply your draft 2017 Rateable Value with the multiplier here (otherwise if you don't know it, click here to search the Valuation Office Agency website):
New Multiplier: 0.467 Small and 0.48 with supplement (depending on location)
Once you have calculated this figure, apply any Transitional Relief % applicable to your property (scroll down to the table at the bottom of the Newsletter). Otherwise, please contact us for any help you need.
On top of the new values, a new appeals system is being brought in: Check, Challenge, Appeal (see below New Appeal System).
If you have any property undergoing reconstruction, there was good news (see below Case Law: Newbiggin v Monk).
Finally, there were three further changes announced to business rates yesterday (see below 2017 Budget Update).
If you need more advice and to talk through the above, please don't hesitate to contact us and we'll have a more in depth look for you.
NEW APPEAL SYSTEM: 'CHECK, CHALLENGE, APPEAL'
In their current form the changes will put significantly greater responsibility on you and your agent, particularly during the check stage where the accuracy and provision of missing information will become their responsibility. The emphasis on the earlier stages of the appeal process requires even greater work upfront. This includes new inspections to verify property information and access to detailed market data to support any appeals as the process becomes more challenging.
2017 BUDGET UPdate
Three changes were announced yesterday to business rates, as follows:
Firstly, any business coming out of small business rate relief will benefit from a cap which prevents the rate that it pays from going up by more than £50 per month.
Secondly, local authorities will get access to a £300m hardship fund for small businesses worst affected by the rates.
And finally, pubs with a rateable value of less than £100,000 will get a £1,000 discount on rates they pay.
Firstly, any business coming out of small business rate relief will benefit from a cap which prevents the rate that it pays from going up by more than £50 per month.
Secondly, local authorities will get access to a £300m hardship fund for small businesses worst affected by the rates.
And finally, pubs with a rateable value of less than £100,000 will get a £1,000 discount on rates they pay.
TRANsitional relief
The Non-Domestic Rating (Chargeable Amounts) (England Regulations 2016 – SI 2016/1265) made on 21 December 2016 and comes into force on 22 December 2016 to introduce the new transitional rules for the 2017 rating list.
The 2005 transitional scheme will now be revoked on 1 April 2017 and not on the day after the regulations were made as was the case in previous Chargeable Amounts regulations. This gives ratepayers and agents up to 1 April 2017 to obtain 2005 list transitional certificates from the VOA.
The 2017 transitional rules are as expected from the draft regulations in the consultation are:
Large Properties with RV greater than £100,000
Rate year starting Cap on liability Increase Cap on liability reductions
1/4/2017: +42% -4.1%
1/4/2018: +32% -4.6%
1/4/2019: +49% -5.9%
1/4/2020: +16% -5.8%
1/4/2021: +6% -4.8%
Medium Properties with RV greater than £28,000 in Greater London and RV greater than £20,000 outside Greater London and RV less than or equal to £100,000:
Rate year starting Cap on liability Increase Cap on liability reductions
1/4/2017: +12.5% -10.0%
1/4/2018: +17.5% -15.0%
1/4/2019: +20.0% -20.0%
1/4/2020: +25% -25.0%
1/4/2021: +25% -25.0%
Small Properties with RV less than or equal to £28,000 in Greater London and RV less than or equal to £20,000 outside Greater London:
Rate year starting Cap on liability Increase Cap on liability reductions
1/4/2017: +5.0% -20.0%
1/4/2018: +7.5% -30.0%
1/4/2019: +10.0% -35.0%
1/4/2020: +15.0% -55.0%
1/4/2021: +15.0% -55.0%
The 2005 transitional scheme will now be revoked on 1 April 2017 and not on the day after the regulations were made as was the case in previous Chargeable Amounts regulations. This gives ratepayers and agents up to 1 April 2017 to obtain 2005 list transitional certificates from the VOA.
The 2017 transitional rules are as expected from the draft regulations in the consultation are:
Large Properties with RV greater than £100,000
Rate year starting Cap on liability Increase Cap on liability reductions
1/4/2017: +42% -4.1%
1/4/2018: +32% -4.6%
1/4/2019: +49% -5.9%
1/4/2020: +16% -5.8%
1/4/2021: +6% -4.8%
Medium Properties with RV greater than £28,000 in Greater London and RV greater than £20,000 outside Greater London and RV less than or equal to £100,000:
Rate year starting Cap on liability Increase Cap on liability reductions
1/4/2017: +12.5% -10.0%
1/4/2018: +17.5% -15.0%
1/4/2019: +20.0% -20.0%
1/4/2020: +25% -25.0%
1/4/2021: +25% -25.0%
Small Properties with RV less than or equal to £28,000 in Greater London and RV less than or equal to £20,000 outside Greater London:
Rate year starting Cap on liability Increase Cap on liability reductions
1/4/2017: +5.0% -20.0%
1/4/2018: +7.5% -30.0%
1/4/2019: +10.0% -35.0%
1/4/2020: +15.0% -55.0%
1/4/2021: +15.0% -55.0%
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