Business Rates: David Hudson Senior Rating Consultant 26 th May - PowerPoint PPT Presentation

Business Rates: David Hudson Senior Rating Consultant 26 th May 2016

What is on the horizon?

Business Rates Planning for 2017 What to expect: • The basics • Planning for the change • Mitigation

The Basics • Rate bill = rateable value (RV) x uniform business rate (UBR) • RV = estimate of rental value • Valuation date 2 years prior to Revaluation • Revaluation 2010 – rental values 1 April 2008 • Revaluation 2017 – rental values 1 April 2015 • UBR = tax rate expressed as amount per £1 of RV • Current UBR 49.3 p (49.7p for 2016/17)

Adjustments • Smaller business with RV below £18,000 (£25,500 in London) may enjoy a slightly lower UBR • Premises in London with RV of £55,000 or more pay a 2p additional ‘Cross Rail Levy’ • Premises in Business Improvement Districts may pay more • There are reliefs for small business occupying premises with aggregate RV less than £12,000 • Some local shops receive additional benefits • Charities enjoy relief at 80%. • Revised liabilities following Revaluation are phased in under a scheme of transitional relief

Planning for the Changes To predict the impact of Revaluation we must look at 3 parameters: • Change in rateable value • Change in uniform business rate • Effect of transitional relief

% Changes in Rateable Value -5 Industrial -12 -9 -7 -8 Retail -7 -6 -8 Office -5 -10 -5 -17 0 -5 -8 -8 -10 -13 -6 0 5 -5 -4 36

Change in Uniform Business Rate • No overall increase in take from rates as result of Revaluation • Annual inflation increase • Allowance for loss on appeal • Estimates for UBR 50.0 to 53.3 p in £ 2017/18 • Additional 2p Crossrail • Business Improvement Districts

Transitional Adjustments

Timing • Oct 2016 new valuations available • Q4 2016 Inflation factor announced • Q4 2016 UBR 2017/18 announced • March 2017 – new rate bills issued • 1 April 2017 first date for Check-Challenge- Appeal

Mitigation • New appeal regulations • Check-Challenge-Appeal • Billing errors • Exploiting loopholes • Empty rates

Are you prepared? • 2010 appeal? • Any changes since 2010 • 2017 budgets • Historic audit • VOA Questionnaires • Empty premises

Aitchison Raffety Business Rates • Forecasting and budget advice • Annual audit of rate bills • Historic forensic rates audit • Estimates for new premises • Completion of VOA ‘Requests for Information’ • Consideration of Draft Rating List entries and appeal recommendations • Undertaking ‘Checks’ • Entering ‘Challenges’ and negotiations with VOA • Further Challenges for Changes in the property or its locality • Appeals to the Valuation Tribunal and Upper Tribunal • Empty rate advice and mitigation

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