The 2017 Business Rates Revaluation was the largest change to rates since 2008 and the staggering rise in the value of commercial properties in London generated a much higher cost to businesses.
All commercial premises are attributed a rateable value by the Valuation Office which is part of HMRC. Under the 2010 Rating List, all rateable values reflected what your premises might have let for, had they existed in their current condition, on 1 April 2008.
The rateable values are passed to the relevant Local Authority, who apply them to the Uniform Business Rate (UBR) which is currently 49.7 pence in the pound. The Council send out annual rate demands and collect the liabilities over 10 or 12 instalments.
Appeals can be submitted against the rateable value by the ratepayer or his agent, either because the assessment is considered excessive or because of a material change of circumstances, such as adjoining building operations.
Previously when Rating Revaluations have taken place, the Government have provided Transitional Allowances on rate liabilities, limiting the maximum increases in annual payment to no more than 12.5% plus inflation in the first year, 17.5 % in the second year, 20% in the third year and 25% in the fourth year. The allowances continue until the simple arithmetic of the new rateable values, applied by the UBR, is reached.
In addition to the business rate charges, rateable values in London that are in excess of £50,000 attract the Crossrail Surcharge of 2 pence in the pound and individual Local Authorities may also charge supplements relating to Business Improvement Districts (BIDS).
DeVono has an expert team here to help you with the Business Rate increase and can advise you in relation to your best options in terms of appeal.
Contact DeVono today for professional and unbiased advice on your new Business rates.