Business rate revaluation date set for 1 April 2015

This means that the rateable value (RV) for all commercial premises – on which business rates payments are calculated - will be based on their rental values as at 1 April next year.

For premises where the RV is assessed having regard to trading receipts – pubs and other licensed premises - the Valuation Office will be considering the three years accounts leading up to 1 April 2015.

Postponed​

Revaluations usually occur every five years and are based on rents from two years before that. The last revaluation was 2010, based on 2008 rents. However, in 2012 the Government said it was postponing the scheduled 2015 revaluation for two years, forcing retailers to pay rates based on 2008 inflated property prices.

Business rates are a huge concern for licensees, with many saying excessive charges are restricting investment and job creation. A survey of Publican’s Morning Advertiser readers last year found that more than half (51%) of publicans described the payments as having a ‘major impact’ on profitability.

Pubs were hit by a 2% increase to business rates at the beginning of April, although this was lower than the original 3.2% rise expected as the Government capped the increase in the Autumn Statement last year.

Vickery Holman Property Consultants said that prior to the new rating list going live on 1 April 2017, it is expecting the Valuation Office to issue a draft list in Autumn 2016, which will at least give some warning to ratepayers and enable them to flag any errors before the new rates kick-in.

Freeze​

Last month the British Beer & Pub Association (BBPA) warned that each pub could face a £350 hike in its business rates bill if the Government does not announce a freeze in the tax multiplier in December's Autumn Statement.

As well as a freeze in the business rates multiplier, it is lobbying for an extension of Small Business Rate Relief to the end of the valuation period (2016-17), a raise in the threshold at which businesses qualify for this relief to £18,000, an improvement in billing and application of reliefs, and for the Government to deliver reforms to the administration and appeals process “at the earliest opportunity”.