From 1^st April 2023, the Business Rates Valuation Lists will now be reviewed every 3 years in England, Scotland, and Wales.  The reason for this is to ensure the Rateable Value reflects the rental market more closely. The valuation date of the next Rating List is the 1^st April 2021 (excluding Scotland where it will be the 1^st April 2022).

The Government is looking to make further administrative changes to the Rating system in England and has published the following topics within the consultation papers:

A Duty to Notify

The Government is imposing a “Duty to Notify”, in which Ratepayers will have to notify Valuation Office Agency each time the circumstances of the property changes as well as ‘Annual Returns’ to confirm no changes have occurred. The consultation paper also discusses a compliance regime to ensure the information is provided, with the ultimate sanction that would withdraw the right to challenge the assessment if the information is not provided.

Transitional Relief

Transitional Relief has always been a self-financing scheme – it forces those who are being overcharged on their Business Rates (as their Rateable Value falls) to subsidise those who are underpaying (as their Rateable Value rises). It means properties are gradually moved to the “correct” payable amount over a period of years.

Is now the time to follow suit with Scotland and Wales and scrap Transitional Relief all together?

Digitalisation of Business Rates

The Government has issued a consultation on the digitalisation of Business Rates with the intention of creating a joined-up system that will allow Business Rates data to be matched with HMRC data.

Under the proposals:

• Local authorities would remain responsible for the billing, collection and enforcement of Business Rates and the administration of all reliefs and exemptions.
• There would be data sharing across the different systems e.g. HMRC, the Valuation Office and Local Authorities.
• Penalties will be introduced to Ratepayers for non-compliance.

If you would like further information on how the Business Rates administration changes will affect your business, please give Graham Isle a call on 07802 337315.