BUSINESS owners across Northamptonshire are reminded by commercial property agent Prop-Search that time is running out for them to address their new rateable values before they come into force in April.
Further to the Valuation Office Agency publishing the Draft 2017 Rating List and advising all ratepayers of their new rate bills in advance of 1 April, businesses only have until the end of March to check their proposed new rateable values.
Samantha Jones, an Associate Director at Prop-Search, said: “The new rateable values were published last year and based on the VOA’s estimate of a property’s annual open market rental value as 1 April 2015. This replaced the current rateable values which were based on 2008 assessments – a period of seven years in which the UK property market has seen enormous shifts.
“The aim of the revaluation is to reflect these shifting market conditions and produce a fairer rebalanced spread of the tax from both a geographical and market sector perspective.”
The market for industrial property has traditionally been much less volatile and this is mirrored in the new valuations. Overall, ratable values for industrial properties in England show an increase of four per cent; the lowest of any of the main property sectors and for the East Midlands the lowest average increase of 3.3 per cent. By contrast, the office sector for the East Midlands shows typical uplifts of 7.8 per cent.
Samantha added: “With only a month to go before the new rateable values are introduced, businesses really are facing a battle against the clock to review current and future bills. Businesses should also remember that the introduction of new rateable values signal the closure of the current 2010 Rating List and a ratepayers ability to appeal against their current RVs.”
Following a period of consultation, the Government is also pressing ahead with regulations to streamline the appeals system – the new Check, Challenge, Appeal procedure. Businesses will now go through a three-stage process:
Check – ensuring the relevant facts are up to date and accurate, with any agreed errors quickly corrected. For the vast majority of ratepayers it is expected that this check stage will be complete in a matter of days.
Challenge – allowing the business to challenge the rateable value on which their business rates bill is based, giving them the opportunity to set out their grounds for challenging, an alternative valuation and to put forward supporting evidence – it is expected that the great majority of cases to be resolved by this point.
Appeal – offering the opportunity to appeal to an independent valuation tribunal. The Government is also introducing an online service to allow ratepayers to provide information about their property and check the process of their application and a £300 fee for appeals that will be refunded if the appeal is successful.
“What this effectively means is that more detailed submissions will be required at an earlier stage in the process,” said Samantha. “Businesses will certainly be more reliant on seeking professional advice on their rates liability as the process is likely to demand fully evidenced and justified appeals, with even less onus on the Valuation Office Agency to justify their valuation.
“Furthermore, the Check Challenge Appeal consultation proposed fees for submitting appeals to the Valuation Tribunal so there will be an incentive to get the application correct to avoid resubmissions.”
Prop-Search, with its years of relevant experience and success in ratings appeals can advise on the merits of appealing a business’s new rateable value; provide pro-active advice to assist in reducing rates liability, provide calculations of a business’s revised liability to help with future budgeting and check if there is any merit in lodging an appeal under the Rating List.
Further information or advice can be obtained from Prop-Search on 01933 223300 or 01604 492000 or via the website www.prop-search.com