Following an announcement on 21st July, the Government has advised that the next national Rating Revaluation of all business properties will take place in 2023, having been postponed from 2021, earlier this year. The 2023 Rating Revaluation will be based on rents at 1st April 2021, to allow time for the effects of the coronavirus pandemic to be reflected in rents.
Andrew Kilpatrick of Kilpatrick & Co said “The latest news on 2023 Rating Revaluation changes the valuation date, which was to be 1st April 2019, which would have been based on rents before the effects of the Coronavirus pandemic were apparent and would have resulted in the Rating List being out of date before it came in. Whilst the VOA had already prepared data on 2019 rents, which work has now been wasted, it is a common sense action in the circumstances.”
The Government has also issued a 40 page Business Rates Review, which invites representations from ratepayers, the property sector and rating agents. The Government says its objectives from this review are: – (1) Reducing the overall tax burden on businesses; (2) Improving the current business rates system; (3) considering the more fundamental changes in the medium to long term.
The purpose of the consultation is to gather views on how the system currently works and the issues that need to be addressed and ideas for changes to taxation. The consultation also asks respondents to consider alternatives business rates, including capital value tax, introduction of an online sales tax, possible removal of reliefs and exemptions, changes required to the check/challenging/appeal system and transitional relief, possible amendments to the business rate multiplier, possible different multipliers for different parts of the country, etc. Interested parties have until 31st October 2020 to respond as the Government is intending to announce changes in April 2021, but with medium and long term changes to be introduced in 2023.
Andrew Kilpatrick said “With business rates responsible for raising some £31 billion, this is an important tax and whilst there have been previous consultations, hopefully this time the Government is serious about taking some proper action to make the system more workable and fairer in spreading the tax burden. I shall be responding to the consultation document through the RICS and the Rating Surveyors Association.”