As we enter the fourth year of the current Revaluation period we set out below an update of recent developments.
The 2015 Revaluation has definitely been postponed already in Wales and Scotland and legislation is being brought forward to postpone the Revaluation in England. Despite opposition from a number of parties this is likely to be confirmed shortly but rather bizarrely we understand that the Valuation Officer is continuing preparatory work for a 2015 Revaluation! However, it has been confirmed that the 2015 Revaluation will still take place in Northern Ireland.
The rate in the pound was increased by the full amount of the RPI factor for September 2012, which was 2.6%, to 46.2p. In addition for those with “large” Rateable Values the Government increased the Small Business Rate supplement by an extra 0.1p which means the total increase for those properties is slightly more than 2.8%. These figures apply unless you are one of the small number of properties still affected by the Transitional Arrangements.
As the Rating List is going to be extended by two years there is going to be increased “cold calling” activity where appeals have not yet been lodged. In some cases ratepayers are told their right of appeal is limited but this is simply not true Any appeal lodged now against the original assessment of the property can be taken back either to 1st April 2010 or the date the company occupied the property, if later, and that situation will continue at least until 31st March 2017. Ratepayers should be wary of “cold callers” as there is usually a very good reason why an assessment hasn’t been appealed at this stage of the list. For instance that the property may be under assessed because of extensions or alterations of which the Valuation Office is unaware.
If a decision hasn’t yet been taken to investigate and appeal against rating assessments, it is not too late to do so. Rapleys has recently been instructed by two companies with considerable property portfolios had not yet lodged appeals on their properties, despite the fact that savings could undoubtedly be made. We are now dealing with these and expect significant savings to be made.
Empty rates are still a very difficult subject but the Government has indicated they are to introduce a new measure with effect from 1st October 2013 to extend empty properties rate relief to vacant “new builds” for a period of 18 months. This only applies to new builds going forward and not “existing new builds” that are currently vacant. There is also a financial limit per claim on the amount of relief available of a maximum of £167,000 over the 2013-2016 period.
A Local Retention of Business Rates scheme is to be introduced which will see Local Authorities retain 50% of locally generated growth in Business Rate income. The stated aim is to give greater financial autonomy with Local Councils seeing direct financial benefit from Business Rates growth in their area. This may prompt Councils to re-introduce Rating Inspectors to try to boost rate income by seeking out improvements and extensions to properties that may result in an increase in Business Rate income.
The “Health” levy in Scotland on large retailers selling both alcohol and tobacco is to increase from 9.3p in the pound to 13.0p in the pound, a 40% increase in the levy resulting in a near 8% increase in rate bills.
Empty property rates in Scotland are to increase substantially from 50% liability to 90% of the full liability. However, there are plans for a “Fresh Start Initiative” where new occupiers of formerly empty shops and offices in Scotland would benefit from 50% reduction in rate liability in the first year.
If you need any further information or advice please do not hesitate to contact one of our nationwide team of experts.