2017 Business Rates changes: how are they affecting you?

If the forthcoming 2017 Rating Revaluation has seemed a bit abstract, the recent publication of the draft Rating List for England and Wales will make it appear much more defined.

The List shows details about proposed rateable values and it is up to ratepayers to check that they are correct.

There is also a new appeals process in place. It consists of three stages in England: ‘Check, Challenge and Appeal’ – though the Scottish and Welsh devolved administrations are considering changes of their own.

Depending on your point of view

The Government sees this new process as a way of simplifying the whole rating appeals system, aiming to save local government substantial sums of money.

That’s not how everybody sees it though. Some businesses and rating agents are concerned that the new system simply shifts the burden of responsibility onto the shoulders of ratepayers.

Because of that, the new appeals system will require more involvement from anyone wishing to challenge their rateable values. Significant evidence and proof will need to be provided for their challenge to meet the stated criteria of being both ‘meaningful’ and ‘complete’.

Disparity

For many businesses, the longer than usual gap between rating revaluations has hit them hard, leaving them facing big rate increases out of all proportion to the actual economic climate. For others, the revaluation is likely to be generous as it seems that the new list is hallmarked by some large disparities.

The 2017 Rating Revaluation does seek to address this, but is being anticipated as the most major shake-up of business rates in a generation. The opportunity for businesses to challenge their values has perhaps never been greater.

So is it easy?

With a new system in place, there are still areas where it is unclear to many ratepayers how the new system will work. One of these areas is to do with so-called ‘Transitional Arrangements’, and in England there will be phasing of large changes in liability in up to three bandings, both upwards and downwards. Separate transitional schemes for Scotland and Wales are also being considered.

The new ‘Check, Challenge and Appeal’ process is likely to be a challenge for everyone involved, especially with the Valuation Office Agency (VOA) reserving the right to take more time over disclosing information. The process may also require evidence, photographs and valuations and perhaps even precedent and case law where appropriate.

Whilst the stated aim of the Government is to simplify the process, the experience of ratepayers and rating agents may well be different – only time will tell.

Regardless of potential obstacles to a successful rating appeal, it’s clear that now that the draft Rating List is published, businesses need to shift up a gear and get checking their details in preparation for 2017.

You can see the draft Rating List at: www.tax.service.gov.uk/view-my-valuation

To get a better understanding of how it financially impacts you, and how you can mitigate it, please get in touch.