Act fast to meet the Business Rates Revaluation deadline

The Government has confirmed that the Valuation Office Agency’s (VOA) revaluation of Business Rates will proceed in April 2023. Appeals against the current level of business rates payable must be lodged before 31 March 2023. Now is the time for businesses to ensure they have their property tax affairs in order.

A draft rating list has been published.

The good news is that the transitional relief scheme - which caps the amount by which rates liabilities rise or fall - is favourable. There will be no limits applied to falling rateable values. This means that those with reduced rateable values will benefit in full from the 2023 revaluation.

For those with rising rateable values (RVs) the scheme will cap year on year increases in rates liability at 30% for large properties.

As with every revaluation, there are winners and losers. Business rates are based upon rental values and the revaluation should reflect movement in rental markets between 2015 and 2021. Retailers are the major beneficiaries, while the Industrial and Logistics (I&L) sector is hardest hit. The national averages for RV movement at April 2023 are: Retail down 10%, I&L up 27%, Offices up 10%.

These are general trends; there are instances where the movement is more extreme:

• Prime offices are up 30%

• Prime retail down 40-60%

• Prime I&L up 60%

There are three key points to consider now in order to minimise your business rates costs:

1. The deadline for appeals against the business rates tax paid since 1 April 2017 is 31 March 2023.
2. Business rates liabilities may be removed during refurbishment works. This can be achieved retrospectively but appeals must be raised before 31 March 2023.
3. Rateable Values that come into effect from 1 April 2023 are now available to review and may be challenged in certain circumstances.

Get in touch for support

Talk to one of our representatives if you need help reviewing your business rates position.