The valuation office released the revised 2010 rateable values on 1st October 2009. Even into 2011 these new listings have provided London offices occupiers a considerable increase in their Business Rates charges.
There is little doubt that the valuation date of April 2008 is an unfortunate one as at this time rents where at an all-time high.
As a result many companies are likely to experience some dramatic increases in rateable value and business rate liability, particularly on Central London offices.
These increases in liability will be phased in by Transition.
Transitional relief is designed to reduce the impact of any significant changes in the rateable value - whether the change is up or down. Your local council will automatically include transitional relief when they calculate your bill. The relief only applies in England.
Transitional relief limits the percentage your business rates bill can be increased or decreased each year following revaluation. The transitional relief will apply each year until your bill reaches what your full bill would have been in 2010. The full 2010 bill is calculated by multiplying the rateable value by the multiplier.
A small property is a property with a 2010 rateable value below £18,000 (or £25,500 within Greater London). All other properties are large properties.
Transition must be self-financing and the limits on increases are funded by the limits placed on decreases.
You can you get an estimate of your rates bill that includes any transitional relief?
You will need your 2010 rateable value and your 2005 rateable value.
Rate payers in London with rateable values in excess of £50,000 will also be exposed to a 2 pence supplement relating to Crossrail.
Appeals can be lodged against the accuracy of the new rateable value, so now is the time to start considering your options.
You can only appeal your rates once (unless there have been changes made to your property).
DeVono can support you with all ratings advice, including the effects of these changes and the merits of appeals.
For further information simply fill in this form and a member of the team will contact you or call Adam Landau on or email email@example.com
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