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 Rating
Revaluation 2005.
The
2005 Rating List is now in effect, and there are number of
changes to the regulations covering the submission of appeals
(proposals) against your new Rateable Value. There are also
changes to the Transitional Relief Scheme and there is a new
Relief Scheme for Small Businesses.
Appeals
Probably
the most important of the changes is the removal of the time
limits on submitting proposals (rating appeals) and the introduction
of a restriction on the number of proposals that a ratepayer,
or their representative, can submit.
In
the past, there was no restriction on the number of proposals
(appeals) that could be submitted and, as a result, it was
not uncommon for a ratepayer or their agent to submit several
duplicate proposals challenging the same Rateable Value on
the same property at the same effective date for the same
reasons. In addition to this, during the 2000 Rating List
there were time limits on the submission of proposals which
meant that if you submitted your appeal against your 2000
list Rateable Value after 31st March 2001, any success you
had could only be effective from the start of the rateyear
in which the appeal was submitted. This led to some agents
submitting a proposal on the same property every year.
All
of these appeals had to be dealt with by The Valuation Office
Agency (VOA or VO) and these practices have been blamed for
the long delays in the Rating Appeal system as it could take
up to three years for a Rating Appeal to be resolved. In an
attempt to cut down on duplicate appeals, the new regulations
say that a ratepayer can submit only one proposal for any
one event. For example, your property was given a new rateable
value from 1st April 2005 so you can appeal against it - once.
If,
for example, there is a Material Change of Circumstance (MCC)
in your locality (such as a shopping centre opening in June
2007) and you feel it has a detrimental effect on your business,
you can submit a proposal to have your Rateable Value reduced
because of that one MCC - once.
The
lifting of the time constraint means that although you can
only appeal once - you can do it at any time before 31st March
2010 and it will still be effective from 1st April 2005, or
in the case of an MCC the date of the MCC.
It
is hoped that these restrictions will ease the burden on The
Valuation Office Agency and, therefore, all appeals will be
dealt with a lot quicker; however, these new regulations make
it even more important that you seek advice only from a qualified,
experienced, specialist rating surveyor.
This
is because the regulation allowing only one appeal may lead
to unscrupulous individuals or organisations submitting appeals
on your property without your consent - they may say it was
submitted "by accident" then suggest to you that
as you are only allowed one appeal they will have to deal
with it - this is not true. If this happens, you (or your
authorised agent) can contact The Valuation Office to inform
them that this was submitted without your consent.
If
you do not have a rating surveyor acting on your behalf, and
would like us to act for you please contact us.
Transitional
Arrangements
The
Transitional Arrangements are sometimes referred to as the
Phasing Provisions.
The
main change to the scheme for The 2005 Rating List is that
although large increases in rate liability will still be phased
in, and the scheme will still be funded by a Transitional
Surcharge (or Transitional Premium) paid by those ratepayers
subject to a large decrease in liability, the scheme will
expire before the end of the list.
This
means that all ratepayers will pay the 'True' liability -
i.e. will not be subject to any transitional adjustment -
in the rate year 2009/2010.
Small
Business Rate Relief
Small
Business Rate Relief (or SBRR) was introduced from 1st April
2005 and can give a significant reduction in the rate liability
of qualifying businesses. The scheme is funded by a supplement
which is paid by all rate payers who do not qualify as a small
business.
How
to Qualify
To
qualify for SBRR (Small Business Rate Relief) you must satisfy
three conditions:
- You
must occupy only ONE* property
- The
Rateable Value (RV) of that Property must be below 15,000
(21,500 in Greater London) on the 1st of April and on each
subsequent day.
- You
must apply for SBRR each year.
*When
assessing how many properties you occupy, an additional property
with an RV of less than 2,200 (such as a Store or a Car Parking
space) may be disregarded.
How
Much Relief is Given
Eligible
businesses with Rateable Values of below £5,000 will
receive 50% rate relief on their liability.
Eligible
businesses with rateable values of between £5,000 and
£10,000 will receive relief on a sliding scale starting
at 50% relief if the Rateable Value is £5,000 but reducing
by approximately 1% for every £100 of Rateable Value
above that.
For
example a qualifying business with a Rateable Value of £7,500
will receive approximately 25% relief, a qualifying business
with a Rateable Value of £9,000 will receive only 10%
relief and a qualifying business with a Rateable Value of
£10,000 will receive no relief.
Businesses
that qualify as a Small Business and occupy a property with
a Rateable Value between £10,000 and £15,000 (£21,500
in Greater London) will not receive any Small Business Rate
Relief, but will not pay the supplement.
Any business that occupies a property with a Rateable Value
of 15,000 or more (£21,500 in Greater London) cannot
be classed as a small business.
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