I’m joined by Simon Green, the Head of Business Rates at Gerald Eve to discuss the complex world of business rates and the changes that have occurred since the recent revaluation.
We talk about impact of the revaluation on different sectors, the tax take on business rates, and the direction of future changes in the system, and shine a light on the proposed rating bill and its implications, including the duty to inform and the potential changes to empty rate relief and material change of circumstances.
KEY TAKEAWAYS
- The total tax take on business rates in the UK is around £25 billion, making it a significant source of government revenue.
- The recent revaluation of commercial properties resulted in an overall increase in rateable values, with industrial properties experiencing the highest growth in most areas.
- The government is considering changes to the rating system, including a move to a three-yearly revaluation cycle and the introduction of a duty to inform or notify the Valuation Office Agency of any changes to properties.
- There are concerns about the proposed changes to material change of circumstances, which may prevent ratepayers from reflecting government actions or regulations in their appeals.
BEST MOMENTS
“The total tax rate’s around £25 billion, so it’s a considerable tax income for the government.”
“The government’s currently consulting on ways to perhaps try and reduce [empty rates], which has some fairly big implications for developers.”
“The principle of empty rates is perhaps the part that really needs more review.”
“The current multiplier of the UBR rate is considered too high at just over 50p. So there’s a call to reduce that.”
“The freeze continues or at the very least the multiplier is increased by a figure lower than inflation because the government has a cap of the inflation figure.”
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