Business rates across the City of Bath are set to rise by as much as £9,874,123 next April say rent and rates specialists CVS, after the Government adjusted the Rateable Values of business properties in England and Wales.
The Government adjusted the values to reflect changes in the property market. The new Rateable Value will be used to determine the basis of the tax calculation for rates next April.
The revaluation of business properties usually happens every 5 years but was controversially delayed by 2 years as a result of the economic downturn.
The last revaluation came into effect on 1st April 2010 based on the property market as long ago as 1st April 2008.
However, new Rateable Values recently published show that across Bath, total Rateable Values have increased by a sizeable £16,041,096 according to a detailed analysis from CVS.
Their analysis shows Bath’s 15,322 businesses had a combined Rateable Value of £391,457,643 based on the last property assessment in 2010, which has formed the basis of rates bills for the last 7 years, but this has just increased to £407,498,739.
As a result, CVS project that next year this will add an additional £9,874,123 in tax to Bath’s overall rates bill which is likely to rise to a huge £203,271,492 on average over the 2017 List.
The Government are currently consulting on a scheme called ‘transitional relief’ that will phase in large increases in rate bills to cushion the blow.
Mark Rigby, CEO of CVS said: “There’s no doubt that the new Rating List isn’t the best bit of news for businesses in Bath.
“The previous business rates assessments took effect just as the financial crisis turned the property market on its head. That meant that over the last seven years, businesses here have effectively been paying less than what they perhaps should have been.
“However, the Government’s proposals for transitional rates relief mean that those businesses expecting higher bills should be cushioned by the blow, and the increase in rates payable will be gradually phased in.”
Businesses facing increased rates bills are advised to seek professional advice as to whether they are paying the correct amount.
The Government’s changes to the business rates appeals process means that there is now a three-stage process known as ‘Check. Challenge. Appeal.’ (CCA) for the property’s new assessment.
The CCA process is intended to manage the flow of cases through the system in a structured and transparent way, and each step must be fully completed in sequence to submit an Appeal.
Nearly three quarter of a million businesses in England and Wales challenged their last assessment with almost 1 in 3 receiving a rebate.
Mark Rigby added: “It is essential that businesses across Bath consider a thorough check of their new tax assessment as there may well be scope for an appeal.”
