PwC comments on the first detail of the business rates revaluation 

30 September 2016

The Valuation Office Agency releases draft Rateable Values for 1.94 million commercial properties today. This is the first revaluation for seven years and will include changes to the rating system, including a new appeals system.  

Phil Vernon, Head of Rating at PwC said: 

“Businesses now have the starting point for calculating their tax from April 2017. The overall increase in English Rateable Values is 9% nationally, largely due to an increase in London values which are set to rise by 22%. However, without information on reliefs and exemptions the potential impact for businesses remains unknown. 

“Under Government consultations business rates on some London properties could increase by as much as 45% in April. Whilst there is some reassuring stability for companies outside of London, larger property portfolios may see an overall increase. For example, large utility companies face an increase of up to 40% on their infrastructure assets. 

"Significantly the draft Rateable Value cannot be appealed until 1 April 2017, when a new appeals system takes effect. 

“Under the current appeals system, the Valuation Officer’s initial assessment can be challenged as a matter of course, starting a programme of informal negotiation and ending in an appeal to a Tribunal. From April, ratepayers will be expected to complete two preliminary stages (check and challenge) before a full appeal can be progressed. Both stages will require full valuation detail being submitted by the ratepayer with penalties for inaccurate or misleading information. Companies will also be required to hold digital accounts in order to progress through these preliminary stages. 

“The new system will have time limits built in to resolve appeals but it’s likely that these limits could prevent any appeal being settled for at least 18 months. In many case it may take several years for appeals to be formally settled. 

“Somewhat controversially, the proposals suggest that appeals will only be allowed if the Ratepayer, or their Agent can prove that the Valuation Officer's valuation is outside the bounds of reasonable professional judgement. It will be open to interpretation by the Valuation Office Agency and ultimately the Tribunal Service as to what that means in practice.” 

Phil Vernon

e: philip.a.vernon@uk.pwc.com

p: +44 (0)1509 60 4130

ENDS  

For more information contact Nicola Thorogood, nicola.thorogood@uk.pwc.com / 02078046007

Twitter
LinkedIn
Facebook
Google+

Comments

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated and will not appear until the author has approved them.