Ratings expert condemns Government proposals

Wiltshire business ratings specialist Kilpatrick & Co has condemned the Government’s latest proposals for amending business rates appeal regulations.

The proposals have been widely criticised by industry experts.

Andrew Kilpatrick of Kilpatrick & Co explained: “The latest draft regulations propose that when an appeal goes to valuation tribunal, the tribunal should only make a reduction in assessment when the valuation is “outside the bounds of reasonable professional judgement”.

“Whilst no definition is provided in the regulations, in valuation cases, courts have typically considered a margin of error of 10 to 15 percent to be not unreasonable.

“This means that if the proposals are implemented as drafted, the valuation tribunal may be precluded from making any rateable value reductions unless over around 15 percent over-assessed.

“This may also preclude most temporary rates reductions, such as changes affecting a property’s locality, such as roadworks or local disturbance, where reductions given are typically 10 to 15 percent.”

The new regulations also detail the new rules for the new three-stage, check, challenge and appeal process and proposed fines for supplying incorrect information and fees for making appeals.

“Ratepayers should work with their trade associations and other professionals to object to these proposals, which seem to be designed to discourage appeals, rather than give ratepayers a right to a fair rates assessment,” advised Andrew.