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Up to 20% increase in Business Rates expected for the City and surrounding areas

Matthew Midwinter / 24 Jan, 20

London City office occupiers are anticipated to be hit by a 10% increase in business rates payments following the Business Rates Revaluation in April 2021. Offices in Midtown, Shoreditch, Aldgate and Southbank may see rises of 20%.

 

Matthew Midwinter, head of our Rating team says, “We’ve seen a lot in the press recently about Business Rates being a heavy tax burden for retailers, many of whom have disappeared from the high street in recent years, but large increases in Business Rates are also expected for offices from April 2021, especially in The City and adjoining office locations.”

 

Business Rates are a tax on ‘brick & mortar’ occupation of property, which is determined based on the rental values in the area.

The valuation date for the 2021 Revaluation is 1 April 2019. This is the date when all rental transactional information is collected by the Valuation Office Agency and used to value properties for the next Rating List.   The last Revaluation was in 2017, with a valuation date of 1 April 2015, and as there have been many fluctuations in the market since that date, we can expect to see changes in Business Rates too.

April 2019 is a particularly difficult date to have any certainty on valuations in The City & surrounding offices.   Not only was the City office market slowing down, but the impact of Brexit and the implications of the relocation of many banks & associated firms out of The City has yet to be fully analysed.

“You will soon be receiving your 2020/21 business rates bill which will be the last bill prior to the 2021 Revaluation. This bill should be audited and checked by a specialist Rating Surveyor as it will not only have a material effect on your business rates payments in 2020/21, but it will also be the basis for your 2021 bills going forward as well.”

Matthew Midwinter - Head of Rating at SW
Topics: News

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