From 1 April new rateable values for commercial properties will come into effect, along with reform to the business rates appeal process. It’s the first revaluation in seven years, and the impact it will have on businesses is causing increasing concern.
What are business rates?
Business rates are a tax paid by a business owner on any commercial property they own or rent. They are calculated based on the rental value of the property.
Many business owners will appeal their business rates based on inaccuracies in their rateable value. Since the last revaluation in 2010, over a million ratepayers have appealed their business rates.
How is the appeal process changing?
As part of the business rates reform, plans to introduce a ‘margin of error’ have been announced, which are due to go before parliament by April.
The proposed reform will stop ratepayers from appealing their business rates if the rateable value falls within a ‘reasonable margin of error’. The plans have caused widespread concern for business owners who could be left substantially overpaying rates.
Which businesses will suffer the most?
With business rates in London expected to soar, the reality of the revaluation is becoming increasingly worrying for small and independently owned London-based businesses. Significant increases in their rates bills, along with a more difficult appeal process could potentially force them out of business.
Please get in touch for further advice on the business rates revaluation and changes to the appeal process.