Business rates will reflect property values more accurately after a shake-up being introduced in new legislation says commercial property agent Prop-Search.
Following the reform, which was first unveiled in the Autumn Budget in 2017, local government minister Rishi Sunak has confirmed that property revaluations for business rates payers in England will increase to every three years from the current five years. The next revaluation will be brought forward a year from 2022 to 2021.
Mr Sunak said: “We’ve listened to businesses asking for more frequent revaluations and are now acting so their bills will more accurately reflect current property values. By bringing forward the next revaluation to 2021, we are making sure businesses can benefit from the change as soon as possible.”
Commenting on the change in legislation, Samantha Jones, an Associate Director of Prop-Search, said: “We welcome the confirmation of the move to more frequent revaluations which will undoubtedly mean more accurate rates bills for occupiers. However, moving the three yearly revaluations will only work is the Valuation Office Agency has the manpower and IT to cope with the increased workload.”
A property’s business rates bill is determined by its rateable value, which is its estimated open market rental value on a set date. This is assessed by the Valuation Office Agency in England.
Samantha Jones concluded: As a property’s business rates bill is based on a precise estimate of the premises’ rental value, business rates revaluations help ensure this estimate accurately reflects the market value of the property and maintains fairness. The 2017 revaluation was the first for seven years and in parts of the country and across certain sectors, led to huge increases for businesses.”
Further information or advice can be obtained from Prop-Search - Tel: 01933 223300 / 01604 492000 or its website: www.prop-search.com