Coronavirus Drives Tax Disputes - Appeals Up 690% | Altus Property Services

Altus Group UK News & Insights.

Global Company News & Events

Coronavirus Drives Tax Disputes – Appeals Up 690%

The economic impact of Covid-19 has led to a huge surge in tax appeals in England with 2,230 non-domestic premises every working day challenging their property valuations which form the basis of business rates bills, a Government agency has today confirmed.

Data released from The Valuation Office Agency, an Executive Agency of HM Revenue & Customs, show a total of 144,910 shops, pubs, restaurants, offices, factories as well as public sector buildings, lodged a Check to their property tax valuation during the first 3 months of the 2020/21 financial year.

The number of Checks lodged was up 690% on the corresponding period in 2019/20 when 18,340 Checks were raised between 1st April to 30th June 2019.

A Check is the first stage of a formal appeal under a three stage process called ‘Check Challenge Appeal’ with Alex Probyn, UK President of the real estate adviser Altus Group, saying “The impacts of Covid-19 on property are already obvious arising from the national restrictive measures introduced to counter the pandemic and grounds exist to support a substantial and prolonged reduction.”

The Government has delayed the next revaluation of business rates in England until 2023 so that property valuations can be calculated by reference to emerging post coronavirus rents that are being paid on 1st April 2021. Experts say successful appeals citing the pandemic are likely to offset that delay.

Probyn stressed that time was of the essence to help those within sectors of the economy not in receipt of the business rates holiday likes offices, factories and warehouses adding “the effects of the pandemic within the tax base must now be reflected quickly as the changes are so fundamental, uniform and wide ranging.” The Chancellor, Rishi Sunak, has vowed to do “whatever it takes” to support business.

The Treasury have written off business rates bills this financial year to the tune of £10.22 billion for all occupied retail, leisure and hospitality properties although Councils in England still expect to collect £15.4 billion in rates according to Altus Group analysis.

 

CCA Statistical Release:
Table 2.1
https://www.gov.uk/government/statistics/non-domestic-rating-challenges-and-changes-2017-and-2010-rating-lists-june-2020
65 Working Days Between 1st April 2020 and 30thJune 2020

For media enquiries

FTI Consulting

Phil Kennedy: +44 (0)20 3727 1286

Giles Barrie: +44 (0) 7798 926 814; +44 (0)20 3727 1042

altus@fticonsulting.com

Paul Turner-Mitchell: +44 (0)7465 220 785

paul.turner-mitchell@altusgroup.com

(out of hours/weekend enquiries)

Contact Us

Contact Us

Find out how we can help you save, contact our team today
0800 023 5310
property@altusgroup.com