New rateable values for properties in England and Wales have come into effect. But what does that mean for your business?
1. The Government’s own report suggests rateable values will rise by over 10% in England making this a worrying cost increase for local businesses.
A property has a rateable value of £20,000 with a multiplier of 49.3p. It pays £9,860 (20,000 x 0.493) per year. A 10% rise could seriously eat into profit margins.
A property’s business rate bill is worked out by multiplying its ‘rateable value’ by the ‘multiplier’. These values are set by the Valuation Office Agency for England and Wales.
2. The English multiplier should fall to 48.0p for 17/18.
There is a legal requirement that the multiplier balances any rises. This is excellent news for businesses in England.
3. Small business rate relief is being extended
To relieve the burden on some small businesses, the lower threshold for small business rate relief is being extended. Properties with values of £12,00 or less will receive 100% relief. Tapered relief is available up to a value of £15,000.
4. What a property consists of is changing
Valuers will be obliged to value each property separately when they are physically separate. So an office and a car park will have a value each, even if they are rented together.
5. Check, Challenge, Appeal
To speed up the expected high volume of appeals against rateable values, the government has introduced a new system for appeals. The aim is to reach agreement on the facts that underpin the valuations at an early stage in the process thereby removing the need for a formal appeal in a large number of cases.
Talk to us to find out more.