28-07-2020
Business rates review

The government has confirmed that the next business rates revaluation in England will be postponed until April 2023. The government has previously announced that the revaluation that was due in 2021 would be delayed due to the coronavirus pandemic but no date had been announced. The revaluation in April 2023 will be based on property values on 1 April 2021.

The new revaluation date means that business rates will be based on property rental values that better reflect the impact of the pandemic. As with any revaluation there are winners and losers and this delay will benefit some businesses and hinder others. 

The revaluation of business rates usually happens every 5 years and is necessary to reflect changes in the property market. The last revaluation came into effect in England and Wales on 1 April 2017, based on rateable values from 1 April 2015. The revaluation does not raise additional revenue for the Exchequer as the multiplier applied to the property value is reduced accordingly. The downside of this delay is that rate bills will continue to be based on now historic 2015 values until April 2023.

The government has also launched a call for evidence on reforming the system. The government is aware that many businesses and stakeholders may need extra time to pull together a full response to all of the issues and so is seeking responses in two phases.

Phase One is asking for views on the multiplier and reliefs sections, as well as any other areas of pressing concern. These need to be submitted by 18th September followed by responses on all other sections by 31 October. The review is expected to conclude in Spring 2021.

Most retail, leisure and hospitality occupiers are currently receiving 100% Retail Rate Relief as part of the government support measures to help the economy cope with the effect of the pandemic. However, it is not known what if any reliefs will be announced from April 2021.

Source: HM Treasury | 28-07-2020

Back

Post a Comment

Your email address will not be published. Required fields are marked *

*

  • ABOUT US

    the accountancy practice kent logo

    The Accountancy Practice is a Kent based firm specialising in small and medium sized businesses. We provide a friendly, professional service and regard our smallest client as important as our largest.
  • Latest News

    06-08-2020
    Job Retention Bonus policy paper published

    The government has ... read more

    05-08-2020
    £50m extra funding for Customs Intermediary Grant Scheme

    Over the past few ... read more

    05-08-2020
    £20m in new grants for small businesses

    £20 million ... read more

    More news

  • CONTACT US

    The Accountancy Practice
    10 Churchill Square
    Kings Hill
    West Malling
    Kent ME 19 4YU

    01732 897929

    Fax: 01732 897939
    info@theaccountancypracticeltd.co.uk


    Facebook
    Twitter
    Linkedin
  • Why choose us

    By working more closely with you than traditional accountants, The Accountancy Practice is able to gain a deeper understanding of your individual business needs. We are then on hand to support you with day to day issues and provide ongoing financial and taxation expertise. You can think of us as your virtual Financial Director.