Business rates have

been a national tax on

the occupation of non-
domestic property since
the introduction of the
uniform business rate
in 1990.
Who charges business
rates and why?
Business rates used to be a local tax paid
to and retained by the local authority. The
tax is now collected locally, but paid to
and administered by central government,
although the revenue is still used to
provide local services. There is currently
debate as to whether some, or all, of the
business rate should be returned to local
control. Business rates raise approximately
20 billion of revenue annually.
How are rates
calculated?
1. To calculate the annual business
rates for your non-domestic
property you rst need to know the
rateable value.
Rating lists in England and Wales are
published every ve years and give new
rateable values for all non-domestic
properties. The rateable value is the
estimated rental value of the property
at a date two years before each rating
list comes into force. The most recent
revaluation came into force on 1 April
2010 with an antecedent valuation date
(the date when rateable values are set) of
1 April 2008.
Rateable values usually change every ve
years but the government has postponed
the next revaluation which is now due to
take place in 2017.
The system differs in Scotland, as there are
14 valuation rolls, each administered by a
local Assessor.
2. The rateable value is then
multiplied by the uniform business
rate (UBR). The UBR increases each
year in line with ination.
UBR 2013/14 2012/13
England 46.2p 45.0p
Wales 46.4p 45.2p
Scotland 46.2p 45.0p
A guide
to business
rates
in England,
Wales &
Scotland
3. Does the small business
rate supplement apply to your
property?
This is a supplement of 0.9p which applies
to properties with a rateable value over
25,499 in London, 17,999 in the rest of
England and 35,000 in Scotland. There is
no additional supplement in Wales.
A further supplement of 2.0p is added
to all properties in Greater London with
a rateable value in excess of 50,000 to
help fund the development of Cross Rail.
4. Is your payment subject to
transitional adjustments (in
England only)?
These were introduced to phase in
increases and decreases in rates bills
following the 2010 rating revaluation. The
maximum increases or decreases are set
by government and vary from one year
to the next and between large and small
properties.
How do you reduce the
rateable value of your
property?
As a ratepayer, you or your agent have
the right to appeal against the rateable
value of your property.
Appeals are initially lodged with the
Valuation Ofcer or Assessor who
considers and negotiates the case.
The vast majority of appeals are settled
through negotiation, but the process
can last several years, simply due to the
volume of appeals. Properties such as
shops and ofces are normally discussed
rst, with more complex properties
dealt with later in the revaluation. If
a reasonable settlement cannot be
reached, the case can be presented
before the Valuation Tribunal or Valuation
Appeal Committee (in Scotland). An
appeal against the decision can be
made to the Upper Chamber or Lands
Valuation Appeal Court (in Scotland) and
beyond.
Appeal procedures for
England and Wales
There are strict procedures for lodging
appeals against the 2010 rateable values.
Only one appeal can be made against
the rateable value of the property at 1
April 2010.
Appeals can be lodged at any time up
to 31 March 2017.
The effective date of an appeal can go
back to 1 April 2010.
Details of any lease including the current
rent must be included on an appeal,
otherwise the appeal is invalid.
Further appeals can be lodged if there
is a material change to the property or
the Valuation Ofcer alters the rateable
value after 1 April 2010. In each case
only one appeal is allowed per event.
A new occupier has the right to make
an appeal even if the previous occupier
had done so already.
The appeal regulations offer the exibility
to lodge an appeal against the rateable
value of a property at 1 April 2010 at
any time. However, the Valuation Ofce
Agency can also serve a notice to alter a
rateable value at any time and backdate
the change to the date the work was
completed. For example, an extension
is built in 2011 but the Valuation Ofcer
does not become aware of it until 2014:
he can increase the rateable value and
backdate it to the completion date in
2011. In these circumstances it would be
wise to accrue for the difference in liability.
We can advise you of the likely increase.
How does it work in
Scotland?
The appeal procedures in Scotland are
more restrictive and the deadline (30
September 2010) for lodging appeals
against a new 2010 rateable value has
now passed.
If a notice to alter the rating roll is raised
by the Assessor, you still have the right to
appeal within six months of the notice
being issued. A new owner or another
person acquiring an interest in the
property also has the right to appeal
within six months of taking over a property.
A material change at, or affecting the
property can be appealed at any time
during the life of the rating roll (and up
to 6 months after the roll ceases to be in
force).
Empty rates
All empty properties in England and
Wales receive 100% rates relief for the
rst three months (six months for industrial
properties). After that the full amount is
payable if the property has a rateable
value of 2,600 or more. In Scotland, the
system is similar with empty properties
receiving 100% rates relief for the rst 3
months. Thereafter the relief falls to 10%
for most commercial property. Exceptions
include industrial premises where 100%
relief still applies.
There are some exemptions and a number
of ways of avoiding the charge. Listed
properties in Great Britain receive 100%
empty rates for the duration of vacancy.
The 42 day rule is also an effective means
to mitigate rates as empty rate relief can
again be claimed after this temporary
period of occupation. Other, more obscure
means are available and we can advise
accordingly if required.
Paying rates
Rates are payable on the rating
assessment shown in the rating list or
roll even if an appeal is made and is
outstanding. Following the settlement of
an appeal, a refund on any overpayment
is made with interest. The billing authority
will actively pursue any ratepayer who
does not pay, or is late paying. The
ultimate penalty for non-payment is
prosecution.
Where do you stand?
Are you keen to make sense of what you
have to pay? Are you making adequate
provision in your future budget for rates
liabilities and the impact of the 2010
revaluation? GVA can help and advise you
on all aspects of business rates. Please
contact one of our specialists today.
For further information
please contact:
National Business Unit Head
Tony Baldwin 0161 956 4312
London & South East
Denise Trollope 020 7911 2393
City of London
Alex Stevens 020 7911 2383
South West & Wales
Leigh Richardson 0117 988 5318
Midlands
Nick Power 0121 609 8274
North East
Paul Manning 01132 808 013
North West
Steve Brown 0161 956 4313
Scotland
Gordon Martin 0131 469 6046
GVA Grimley Limited is a principal
shareholder of GVA Worldwide
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