The government has confirmed today that the revaluation planned for 2021 will now take place in 2023.
The 2023 Rating List will be based on property values as of 1 April 2021, in an attempt to reflect the impact the Covid-19 pandemic is likely to have on values.
In documents published today (Tuesday 21st July), the government has said its ambition is to develop a system that reduces the overall burden on businesses, puts the tax on a more sustainable footing and presents options for more fundamental long-term change.
The Treasury has said it will consider all elements of the current system and explore the potential strengths and weaknesses of alternative property and online taxes put forward as possible replacements for rates.
Rob Cohen, Partner in our Leeds Rating Team commented, “Although the Government’s intentions in delaying the Revaluation appear noble, having a valuation date at a time where there is likely to great market uncertainty will pose a lot of challenges for the VOA.
“If they had stuck to proposals for the current List to be 4 years with 3 yearly revaluations thereafter, there would have been a 2021 and a 2024 Revaluation and the system would have changed to be more responsive to fluctuations in the market as was intended. Instead, as it stands, ratepayers will be lumbered with their current assessments for another 2 years.”
Unsure about how today’s announcement might affect you and your business then please get in touch.
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