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Business Rates: David Hudson Senior Rating Consultant 26 th May - - PowerPoint PPT Presentation
Business Rates: David Hudson Senior Rating Consultant 26 th May - - PowerPoint PPT Presentation
Business Rates: David Hudson Senior Rating Consultant 26 th May 2016 What is on the horizon? Business Rates Planning for 2017 What to expect: The basics Planning for the change Mitigation The Basics Rate bill = rateable value
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Business Rates Planning for 2017
What to expect:
- The basics
- Planning for the change
- Mitigation
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The Basics
- Rate bill = rateable value (RV) x uniform business
rate (UBR)
- RV = estimate of rental value
- Valuation date 2 years prior to Revaluation
- Revaluation 2010 – rental values 1 April 2008
- Revaluation 2017 – rental values 1 April 2015
- UBR = tax rate expressed as amount per £1 of RV
- Current UBR 49.3 p (49.7p for 2016/17)
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Adjustments
- Smaller business with RV below £18,000 (£25,500 in London)
may enjoy a slightly lower UBR
- Premises in London with RV of £55,000 or more pay a 2p
additional ‘Cross Rail Levy’
- Premises in Business Improvement Districts may pay more
- There are reliefs for small business occupying premises with
aggregate RV less than £12,000
- Some local shops receive additional benefits
- Charities enjoy relief at 80%.
- Revised liabilities following Revaluation are phased in under a
scheme of transitional relief
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Planning for the Changes
To predict the impact of Revaluation we must look at 3 parameters:
- Change in rateable value
- Change in uniform business rate
- Effect of transitional relief
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% Changes in Rateable Value
Office Industrial Retail
- 4
- 6
- 5
- 5
- 12
- 7
- 8
- 10
- 10
- 8
- 5
- 9
- 13
- 17
- 7
5
- 5
36
- 8
- 6
- 8
- 5
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Change in Uniform Business Rate
- No overall increase in take from rates as result
- f Revaluation
- Annual inflation increase
- Allowance for loss on appeal
- Estimates for UBR 50.0 to 53.3 p in £ 2017/18
- Additional 2p Crossrail
- Business Improvement Districts
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Transitional Adjustments
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Timing
- Oct 2016 new valuations available
- Q4 2016 Inflation factor announced
- Q4 2016 UBR 2017/18 announced
- March 2017 – new rate bills issued
- 1 April 2017 first date for Check-Challenge-
Appeal
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Mitigation
- New appeal regulations
- Check-Challenge-Appeal
- Billing errors
- Exploiting loopholes
- Empty rates
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Are you prepared?
- 2010 appeal?
- Any changes since 2010
- 2017 budgets
- Historic audit
- VOA Questionnaires
- Empty premises
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Aitchison Raffety Business Rates
- Forecasting and budget advice
- Annual audit of rate bills
- Historic forensic rates audit
- Estimates for new premises
- Completion of VOA ‘Requests for Information’
- Consideration of Draft Rating List entries and appeal
recommendations
- Undertaking ‘Checks’
- Entering ‘Challenges’ and negotiations with VOA
- Further Challenges for Changes in the property or its locality
- Appeals to the Valuation Tribunal and Upper Tribunal
- Empty rate advice and mitigation
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