70 Firms A DAY See A Business Rates CUT Through Successful Property Tax Appeals
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, shows that 82,400 non domestic properties in England from shops to restaurants to offices to public sector buildings registered a ‘Check’ between 1st April 2017 and 31st March 2019, the first stage of a formal appeal under the Check Challenge Appeal Regulations. The volume of appeals was, however, down by 78% from 371,150 on the same 2 year period after the 2010 revaluation.
The data released also shows that, since the controversial revaluation came into effect on 1st April 2017, up to and including 31st March 2019, a total of 51,470 appeals in England have been been successful with 48,640 ‘Checks’ being either agreed or partially agreed and 2,830 ‘Challenges’ also being successful. Against the same period in 2010, just 34,790 appeals were agreed or deemed well founded.
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 Altus Group, who’s firm lodged 1 in 6 of all appeals, said, “Despite some valid criticisms of the new appeal regulations, volume was always going to be down markedly from the same period under the last cycle with around a third of all properties now exempt from business rates and the deterrent for speculative appeals that now exists within the appeal process. The new process requires a different approach. The key issue for business is to get property valuations corrected as quickly as possible and whilst overall volume may be down, successful appeals are up, but it is critical that we work together to speed up in the settlement process even further.”
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.