In our news story last week we explained that the government has announced that business rates assessments for the new rating list at the 1st April 2017 will be based on the rental value of properties at the 1st April 2015.
Below are some FAQ’s about the new rating list and how you can prepare for it :
I thought the rating list started every 5 years?
Since 1995 the rating list has ran in 5 year cycles however, in 2012 the government announced that they were extending the 2015 rating list by another 2 years. This meant the new rating list would begin on the 1st April 2017. The Government stated that this would help ratepayers have stability in their rates bills and be able to budget accordingly.
I am thinking of extending or alternating my property / I am under going a lease renewal / I am in the process of acquiring or leaving my property
If any of these situations apply to you, we would recommend seeking professional advice from a RICS certified chartered surveyor who may be able to help advise you on the best way forward.
My valuation is based on trading receipts not my rent, how will my Rateble Value (RV) be decided?
The Valuation Office (VO) will take in to account trading receipts from 3 years accounts, up to April 2015.
How will the VO decide on my new RV for 2017?
You should have already received or receive shortly a form of return from your local valuation office. This will ask for information regarding lease terms, rents paid, trading accounts and other information. This form allows the VO to make sure that the assessment of the property is correct. You must also be aware that If the form is not returned to the VO with 56 days from the day you receive it you will be fined £100.
I have had a ‘Form of Return’, what do I do with it?
The Valuation Office has started to issue forms of return to ratepayers – this will ask for information about rents paid, lease terms, or your trading accounts, your responses to the questions will need to accurate but thought through. If the form is not returned to the VO with 56 days from the day you receive it you will be fined £100. The information provided on the form will allow the VO to ensure the assessment of the property is correct, if you need any assistance in filling in the form you should contact your local VO office http://www.voa.gov.uk/corporate/contact/index.html
When will I find out what my new rateable value is?
In the autumn of 2016 the Valuation Office will issue a ‘draft list’, which gives ratepayers and their advisors the chance to raise any immediate errors before the new list in 2017 goes ‘live’. This will allow you to see your new RV.
How will the new list affect my transitional relief?
Transitional relief arrangements for all properties will end in March 2015. Transitional relief phases in both increases and decreases in RV and under the 5 year list previously it would have phased in these changes until the end of the 2010 rating list. If transitional relief has been phasing in an increase and you are still receiving this relief, for the last two years of the rating list you will have to pay the full cost of the 2010 RV. Likewise if transitional relief has been phasing in a decrease you will now see the benefit of paying on the reduced 2010 RV. You will find this relief noted on your rates bill from your local council.