14 March 2018
Chancellor Philip Hammond announced a surprise change to business rates in his Spring Statement delivered on 13th March 2018, says Marcus Andrews, Chartered Surveyor at Goadsby.
He is to bring forward the next business rates revaluation from 2022 to 2021. From 2022, business rates revaluations were already due to change to three yearly. So the one to be brought in now from 2021, will see the next revaluation in 2024, then 2027, and so on.
Marcus Andrews, at Goadsby says "in his Autumn statement he pledged that we would have 3 year re-valuations in the future. To now bring this forward 12 months is most welcome. It will make the system far more reactive to economic changes in particular towns and locations. It will ensure that business ratepayers’ bills are more quickly corrected in line with market circumstances."
The 2021 revaluation will be based on rental values from around April 2019, as the Valuation Office (VO) - who set Rates - always uses evidence from 2 years earlier. This of course is not too far away. So businesses need to bear this in mind when agreeing rents over the next 12 months on the properties they rent. The rent you settle for may well prove to be compelling evidence to the VO in their 2021 re-valuation.
Of course, the final effects of all of the earlier re-valuation on rate bills will depend on whether the Chancellor again allows transitional arrangements for the changes that occur in 2021. This affects both increases and decreases in rates bills. Transitional relief is not automatic; but was applied to the 2017 List changes.
Should you require any further information or advice please feel free to contact Marcus Andrews FRICS on 01202 550140 or email: firstname.lastname@example.org