Sanderson Weatherall (SW) have acted for Car Showroom operators and have successfully been minimising their business rates liability for over 30 years.

How has Covid-19 impacted on rates liability for car showroom operators?

In March 2020 the country came to a standstill as the public were ordered to ‘stay at home’. As with the majority of businesses, Car Showrooms were forced to close their doors. The Government expanded the existing retail relief scheme to include more property types including Car Showrooms.

Car showrooms should have benefited from the following relief:

• 2020 – 2021: 100% rates relief
• 2021 – 2022: 100% of rates relief from 01.04.2021 to 30.06.2021 followed by 66% rates relief up to 31.03.2022 (subject to cash caps/conditions)
• 2022 – 2023: 50% of rates liability (subject to a cap of £110,000 per business)

The critical point is that not all Car Showrooms are correctly described in the rating list meaning that the relief is not always automatically applied to the account. SW have been liaising with Local Authorities to ensure that all our clients entitled to relief, receive it.

2017 Valuations, what can Sanderson Weatherall do for you?

For the majority of ratepayers operating car showrooms, rating assessments increased between the 2010 and 2017 rating lists. However, during this period the motor sales industry has seen dramatic changes which has impacted on the profitability of new and used car sales. As such, it is our assertion that increases in rating assessments between the lists are not justified.

SW are involved with a consortium of agents Nationwide looking to Challenge the valuation scheme adopted by the VOA for Car Showrooms. As these discussions are ongoing, there has never been a better time to instruct a review of your current assessment. If our team identify opportunity for a reduction in 2017 RV, this can be added to the list of properties already involved in this collective Challenge.

What could the 2023 Rating List bring for Car Showroom operators?

On 1st April 2023 a new rating list will come into effect with an Antecedent Valuation Date (AVD) of 1st April 2021. As with all revaluations there will be winners and losers and the detail has not yet been published by the Valuation Office Agency (VOA). Given the turbulent year leading up to valuation date it remains to be seen how the VOA will reflect issues caused by Covid-19 in the Business Rates valuations. SW will be on the front line ensuring the Car Showroom operators are well represented in discussions revolving around 2023 business rates valuations and VOA schemes of value.

The draft valuation list is expected to be published in December 2022 which will shed more light on the likely impact on operators in the coming years. SW can proactively review the draft valuations and enter into discussions with the VOA in an attempt to get an accurate Rateable Value agreed ahead of the list going live.

Conclusions

With just over 8 months left to lodge Checks to the VOA seeking a reduction going back to 1st April 2017, time is of the essence to seek professional advice and to have a review of the valuations currently adopted undertaken.

For any queries or for further information regarding your Business Rates liability, please contact one of our Business Rates team.