The current Rateable Values have been in place almost a year. Local Authorities will be issuing the 2011/12 bills in March. Ensure you don’t overpay.
Understanding your bill
Business rate demands are calculated by multiplying the Rateable Value by the Uniform Business Rate, which for 2011/12 is set at 43.3 pence for most properties.
There may be additional ‘supplements’, notably in London where rateable values over £55,000 incur a two pence supplement for Crossrail. Further supplements apply in the City of London.
At the time of a revaluation many rateable values will increase substantially and others will fall. Under the transitional scheme bills for some premises will increase by as much as 23% in 2011/12. Reduced bills are subject to an annual limit on the level of reduction.
Update on appeals
A significant number of appeals against the former (2005) revaluation are still outstanding. This means appeals against the new Rateable Values are unlikely to progress until well into the forthcoming rate year.
Why some appeals have not been made
Where there are significant transitional adjustments, reductions in Rateable Value may not produce rates savings in the early years after a revaluation. In such cases the timing of appeals needs to balance cash flow and tactical considerations.
The Rateable Value is the Valuation Officer’s assessment of the premises’ rental value. Where a rent is payable, this might support the valuation, or even a higher valuation.
Co-ordination with other interested parties will be key to the success of appeals and is an important consideration in their timing. Ill considered appeals may not produce savings and, in some cases, may have the opposite effect!
Changes for empty property
Empty buildings are subject to full rates after an initial exemption period (six months for industrial premises; three months for other commercial premises).
Smaller premises with Rateable Values up to £18,000 have been exempt from this charge but, from 1 April 2011, this is reduced to £2,600.
In Scotland, empty industrial premises have been rates exempt with other commercial property paying 50% after an initial three month exemption. From 1 April 2011 we understand Scotland will fall in line with England and Wales.
There are various strategies for mitigating empty rate charges and we can advise on the individual circumstances of each case.
To ensure you are not paying more than you should, contact our Business Rates team.
