150 Firms A DAY Appeal Their Business Rates
New rateable values, which are an estimate of a property’s annual rent on 1st April 2015, came into effect on 1st April 2017, and are 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, shows that 52,550 non domestic properties in England from shops to restaurants to offices to public sector buildings registered a ‘Check’ during 2018 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, a total of 56,240 appeals in England have been resolved as of 31st December 2018 during the 21 month period, with 37,950 being successful.
Councils across England estimate that the cost of business rates appeals will be £1.1 billion for the next financial year in 2019/20 albeit £101 million lower than the current 2018/19 financial year.
Alex Probyn, President of UK Expert Services at real estate adviser Altus Group, who’s firm lodged around 1 in 6 of all appeals, said:
“Despite some valid criticisms of the new appeal regulations, the system works if you get stuck in and we continue to engage with the VOA on ways to help improve it. We increased our volume by 90% in the third quarter of 2018 and the VOA are now clearing more Checks than they receive which has to be some positive news for business.”
The Ministry of Housing Communities and Local Government have confirmed that they expect Councils in England to collect £25 billion in business rates in April for 2019/20 up £206 million with the standard tax rate exceeding 50% for the first time in April.