2023 Business Rates Revaluation
The Government have confirmed by statutory notice earlier today that the 2022 Rating revaluation has been postponed. A new date has been set for 1st April 2023 with an antecedent date of valuation of 1st April 2021. Accordingly the 2017 rating list will continue in operation for a further year, ending on 31st March 2023. In practice this will mean that where we have already secured reductions in rateable value for clients on 2017 list assessments the ratepayer will get the benefit of savings for an additional year. Further, where we secure reductions on appeal going forward, subject to the available reliefs, a reduction in rateable value will result in a reduction in annual rates liability for 6 years from 1st April 20217 to 31st March 2023.
The Governments long stated aim has been to reduce the period between revaluations from 5 years down to 3 years. In practice because of a number of factors, most notably Covid 19, the period has increased to 6 years. The proposed 2015 revaluation was similarly delayed by David Cameron for political purposes to 2017 so the 2010 list was in practice in force for 7 years as opposed to 5.
Covid 19 Appeals
Head of Fletcher King Professional Services, Bob Dickman, has been actively lodging appeals over the past couple of months for all of our clients, proposing a reduction in assessment with effect from 23rd March 2020 on the basis that Covid 19 has given rise to a material change in circumstance (MCC) which should be taken into account in the assessment. A material change in assessment can either be a physical change to the property or a physical change in the locality. We have suggested that the latter applies in this case and the closure of shops, bars and restaurants etc. and the reduced transport facilities in the locality is the physical change. If successful these appeals will lead to a reduction in assessment (probably for the duration of the List) which is quite separate from the other reliefs that are currently available e.g. the 12 month rate holiday for shops and leisure facilities.
Following the submission of many thousands of appeals across the UK, the Valuation Office Agency have recently confirmed that they agree that Covid 19 has given rise to an MCC and they have appointed a specialist team to sit down with a small team of agents to consider the effect on rental values with a view to agreeing reductions. If an agreement is reached, reductions are unlikely to be uniform as some hereditaments have clearly been affected more than others with Central London offices clearly being one of the worst affected classes of properties. The VO have said that if reductions are agreed that they will only apply to those who have lodged appeals. Accordingly whilst our Professional Services Team have lodged appeals for all our current rating clients (including retail and leisure) as the benefit will likely go beyond the 12 month rates holiday which currently applies for those classes of property)
If you are looking for help at the current time with your rates liability, please contact Bob Dickman (firstname.lastname@example.org) or Will Preece (email@example.com) for further information on how Fletcher King can assist you.