Swindon & Wiltshire News
Expert advice: Rating Revaluation has been pushed back to 2023
The next national Rating Revaluation of all business properties will take place in 2023, having been postponed from 2021, earlier this year.
The 2023 Rating Revaluation will be based on rents at April 1, 2021, to allow time for the effects of the coronavirus pandemic to be reflected in rents.
Whilst the Valuation Office Agency had already prepared data on 2019 rents, which work has now been wasted, it is a common-sense action in the circumstances.
The Government has also issued a 40-page Business Rates Review, which invites representations from ratepayers, the property sector and rating agents.
The Government says its objectives from this review are:
- Reducing the overall tax burden on businesses
- Improving the current business rates system
- Considering the more fundamental changes in the medium to long term.
The purpose of the consultation is to gather views on how the system currently works and the issues that need to be addressed and ideas for changes to taxation.
The consultation also asks respondents to consider alternatives business rates, including capital value tax, introduction of an online sales tax, possible removal of reliefs and exemptions, changes required to the check/challenging/appeal system and transitional relief, possible amendments to the business rate multiplier, possible different multipliers for different parts of the country, etc.
Interested parties have until October 31, 2020 to respond as the Government is intending to announce changes in April 2021, but with medium and long term changes to be introduced in 2023.
With business rates responsible for raising some £31 billion, this is an important tax and whilst there have been previous consultations, hopefully this time the Government is serious about taking some proper action to make the system more workable and fairer in spreading the tax burden.
Andrew Kilpatrick is managing director of commercial property consultancy Kilpatrick & Co. For professional advice on business rates, contact Andrew at post@kilpatrick-cpc.co.uk
