Business Rates Revaluation | Altus Property Services

Your guide to the next Business Rates Revaluation

This is your guide to the next business rates revaluation in England which has been postponed until April 2022

 

The business rates landscape is constantly evolving and the effects of the Covid-19 pandemic have meant that businesses are having to stay informed of continual changes to the rules and the implications of these changes.

 

On this page you will find up to date information regarding the next Revaluation as well as the background on the reason for the postponement from 2021 to 2022.  In addition we have provided answers to some of the most common questions regarding the Revaluation.

 

Robert Hayton

 

Robert Hayton
Executive Vice President
Head of Empty Rates & Property Tax

Why was the Revaluation postponed from 2021 to 2022?

 

The short answer is due to the effects of the Covid-19 pandemic on the commercial property market. Rateable Values were due to be based on rental levels as at April 2019 despite rental values for many properties now being in a period of downward pressure.  In particularly hard hit sectors it is not yet known how significant potential falls in rental values may be.

 

By delaying the Revaluation to 2022 and moving the associated valuation date to post Covid-19, ratepayers property valuations will now reflect any fundamental changes to the property market caused by the pandemic.  This means that rates bills will be more closely aligned with actual economic circumstances.

What are the key benefits from delaying the Revaluation until 2022?

Certainty
No large scale and unexpected changes to business rates liabilities next April

Stability
As Rateable Values will not change, there is a stable base for the Government to deploy Covid related rates reliefs more easily.

Fairness
The next Revaluation will set Rateable Values based on rental levels reflecting the impact of Covid-19.

Alignment
New Rateable Values will be more closely aligned with the post Covid-19 economy.

 

 

What valuation date will be used for the 2022 Revaluation?

 

At the moment the Government has not confirmed what valuation date it will be using to base new Rateable Values on.

 

Historically the valuation date (termed the antecedent valuation date or AVD for short) has been set 2 years prior to the new values coming into effect.  So for example in 2017 the Rateable values were based on rental levels in 2015.

 

It would be safe to assume that the AVD will not be set as April 2020 as this was at the height of the Covid-19 pandemic.  Altus Group is lobbying the Government to adopt a later valuation date. The reason being that the crisis will, hopefully, be well and truly behind us then and we will have a fuller and clearer picture of its implication upon property and market rents. This will coincide with restoring business confidence

How will delaying the Revaluation to 2022 affect Covid-19 related business rates reliefs?

 

The business rates system has been extensively used to deliver a range of financial assistance to businesses during the Covid-19 crisis.

 

By delaying the Revaluation to 2022 it makes it easier and faster for the Government to assess any changes they need to make to the current assistance package.

How will a Revaluation in 2022 affect transitional relief and its impact on rates bills?

At present there is no confirmation of whether there will be any transitional relief scheme for the 2022 Revaluation however history would indicate that it will be highly likely.

 

With the valuation date moving to a post Covid-19 date, possibly 1st April 2021, then some sectors will see large falls in their Rateable Values.  In the past the Governments downwards transitional relief scheme has limited the decrease in bills and phased the reduction in over a number of years.

 

Altus Group will continue lobbying for the removal of downwards transition as we believe this is fundamentally unfair to ratepayers.

Now that the 2017 Rating List is confirmed to last 5 years, as originally planned, how will this affect appeals against the current Rateable Values?

 

At this point we do not know whether the postponement of the Revaluation will free up resource at the Valuation Office Agency to speed up the rate at which business rates appeals are processed.  There is already a large body of outstanding Checks and Challenges in the system as well as an increase in future activity surrounding the impact of Covid-19.

 

Businesses should still continue to act sooner rather than later in starting an appeal as an increasing delay to settlements could be an issue in the future.

Appealing Your Business Rates

As a significant business expense, it’s worth reviewing your business rates regularly to ensure they are correct and you’re not over-paying.

 

As the largest business rates adviser in the UK, we have the largest database of rates related property information, putting us in a unique position to secure bigger savings for our clients.

 

Altus Group is a trusted professional business rates agent, fully regulated by the Royal Institution of Chartered Surveyors and a member of the Institute of Revenues Rating and Valuation.

 

We place the highest professional standards at the heart of our business to deliver the best possible outcome for our clients.

 

Our no win no fee service means no upfront charges or survey fees – our interests are fully aligned with yours. No hidden charges. No upfront fees.

 

Send us a copy of your business rates bill using the form provided to get started.

 

Submit your business rates bill for a free check

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