100,000 Firms Seek A Business Rates CUT As Appeals Increase
Rateable values, which are an estimate of a property’s annual rent on 1st April 2015, came into effect on 1st April 2017, and form the basis of the calculation for business rates bills until 2021.
Data released today by The Valuation Office Agency, an Executive Agency of HM Revenue & Customs, show that 100,740 non domestic properties in England from shops to restaurants to offices to public sector buildings registered a ‘Check’ between 1st April 2017 and 30th June 2019, the first stage of a formal appeal under the Check Challenge Appeal Regulations.
The data released also shows that, since the controversial revaluation came into effect on 1st April 2017, upto and including 30th June 2019, a total of 89,440 ‘Checks’ in England were resolved with 68% of those ‘Checks’, 60,500 in total, being either agreed or partially agreed.
The number of ‘Checks’ being registered in the last quarter increased by 7.8% from 17,020 for Q4 of 2018/19 compared with 18,340 during Q1 of 2019/20.
Councils across England estimate that the cost of business rates appeals will be £1.1 billion for 2019/20.
Alex Probyn, President of UK Expert Services at real estate adviser Altus Group, who’s firm has lodged 1 in 6 of all appeals, said:
“Despite some valid criticisms of the new appeal regulations, it’s positive to see that the number of first stage ‘Checks’ being settled has risen by 14% in the last quarter, but the focus must now be on the speed of response and resources at the ‘Challenge’ stage where numbers are worryingly increasing with many fast approaching the deadline for ‘Appeal’.”
The Ministry of Housing Communities and Local Government have confirmed that they expect Councils in England to collect £25 billion in business rates this year.