The business rates system is in a state of flux and there is no doubt the government have introduced some of the greatest procedural changes to the rating system since the centralisation of business rates in 1990.

Despite these changes – if a tangible case exists to pursue a rates appeal – ratepayers, whether they be occupiers or landlords of vacant space, should not be put off.

Those involved with business rates have no doubt been hugely unsettled by the constant procedural changes not just to the Valuation Tribunal but also the introduction of a new appeals process that has been brought in by the government.

This new online appeals system is still in Beta mode and there have been significant operational issues with the use of this site.

However, there are positives that can be seen, with site improvements, and also the development of an API to be available for testing by the end of this year – planned by March of next year. An API allows computer programmes to talk to each other, which assists agents to manage the appeals process more easily for their clients.

In addition, the previously long-winded appeals process had its difficulties and critics. The new appeals process offers some hope to those ratepayers and agents alike, who would like clear deadlines within each stage.

In summary, the new appeals process is called ‘Check, Challenge, Appeal’. Simplistically, this is intended to split the process into clear stages. It starts with the Check stage to confirm the facts, followed by negotiations over levels of value within the Challenge stage, and lastly, the Appeal stage would be implemented for cases in which agreement cannot be reached.

These stages build in clear deadlines with backstop dates for the Valuation Office (VO) to respond, which does enable purely factual errors to theoretically be dealt with earlier than before.

In other changes, ratepayers of commercial properties that have undergone substantial refurbishment or building works have had a boost following a significant Supreme Court decision – following the ‘Monk vs Newbigin’ outcome earlier this year – which has the potential to reduce their rating assessments to £1. Despite the appeals window now being closed, under certain circumstances until 31st March 2018, the Valuation Office also have the potential to backdate these reductions to 1st April 2015.

It is also worth being aware that as we move towards the closure of the 2010 Rating List for amendments by the VO on the 31st March 2018, it is quite common for the VO to increase assessments as they bring their files up to date. Therefore, should a ratepayer receive a Notice of Alteration to increase their assessment which backdates an increase, it’s worth seeking professional advice promptly as this Notice comes with a fresh limited right of appeal period, that provides scope to investigate an otherwise now closed Rating List. If you do receive a Notice do not ignore it, there could be scope to challenge the increase and obtain backdated savings.

There has been coverage in the national press about the so-called ‘Staircase Tax’, in which the VO have created individual rating assessments for otherwise single occupiers. This rating applies even if they are, for example, adjacent suites (across a corridor) or vertically connected – with the unexpected and unwelcome loss of small business rates relief in some cases. This follows the ‘Mazars vs Woolway’ Supreme Court decision. Businesses concerned about this should seek professional advice to establish if scope exists to retain relief.

Despite the current winds of change, ratepayers should not be put off reviewing their rates. If you believe your assessment needs reviewing – either following a Valuation Office Alteration, or simply because you feel it doesn’t look right. They can help you navigate through the system and deal with the appeals process on your behalf.

For more information on this topic or on our business to business consulting, please contact us.

Article by Paul Giness