Welcome to the Knight Frank comprehensive rates liability guide.
The aim of this document is to provide ratepayers with a detailed breakdown of all the relevant facts and figures needed to accurately calculate their rate charges based on the 2017 Rating List.
The 2017 Rating List came into force on the 1st April 2017 and this heralded significant changes to Business Rates. The most notable change to rating in England is the introduction of Check, Challenge and Appeal (CCA). This is a new 3 step process to allow ratepayers to challenge and appeal their rateable value. Further details can be found on the Valuation Office Agency website.
Although the overall amount collected through Business Rates remains largely the same after a revaluation, the rates charged on individual businesses will vary significantly depending on changes to their Rateable Value (RV). It is important to understand that a RV is the Valuation Office Agency’s estimate of the annual rental value of the property as at a statutorily fixed valuation date. This date is always fixed two years before the list commences and the 2017 valuation list antecedent date is 1st April 2015. The last time properties were revalued was April 2008 and it is the change in the property market over these seven years which has caused the significant changes in rateable values and Business Rates payments.
The next ‘Valuation List’ for England and Wales was scheduled to come into force on the 1st April 2021, however, due to the outbreak of Covid-19, the English and Welsh Government have postponed the ‘Next Revaluation’ to 1st April 2023, with an antecedent date of 1st April 2021, this will enable the impact of Covid-19 to be considered when all assessments are ‘Revalued’.
The Scottish Government have announced that the next Revaluation which was programmed in for April 2022, will now be delayed until April 2023 and will be based on a “tone date” of April 2022, one year prior to the Revaluation itself (rather than the normal two years).
USING THIS GUIDE
In order to fully benefit from this guide, ratepayers will need to know their current RV. This can be found on any rate demand or on the Valuation Office Agency (VOA) website (www.voa.gov.uk). By applying the relevant adjusted Uniform Business Rate (UBR) multiplier to the respective RV, the initial liability can be established. Ratepayers can then use the information contained in this guide to check if they have entitlement to any reliefs or exemptions. Once these are applied, the chargeable amount will be calculated for the year. In certain cases, the above calculations may result in a different amount from that demanded, this would mainly occur when the property is subject to the transitional relief provisions. If this is the case, then the phasing limits on changes in liability can be found in this guide for England, Scotland and Wales.
Business Rates are subject to regular legislative review. This guide is limited to the information currently available. This edition was published in Q2 (2021-2022 rating year). In order to ensure ratepayers are kept up to date, we would recommend subscribing to updates of this guide by using our website knightfrankrating.com or contact our Business Rates team.
2020/2021 & 2021/22 – SPECIAL PROVISIONS – COVID-19 CORONAVIRUS
In March 2020 and Subsequently in February and March 2021, the English Government and the devolved Parliaments in both Scotland and Wales, introduced several measures to assist businesses in dealing with and mitigating the economic uncertainty caused by the global outbreak of Covid-19. This also include support to assist businesses in the post pandemic economic recovery. Further Guidance is laid out in this guide.