Budget Business Rates Bombshell – Happy 2015

Whilst the Autumn Statement seemed to grab all the positive headlines, hidden in the small print of the HM Treasury documentation was a rating ‘bombshell’, which has a massive impact on ratepayers who are yet to undertake a rates review.

Many organisations are unlikely to understand the significance of this small print until it is too late, due to the shortness of notice!

The impact should not be under-estimated, as the period that appeals can be backdated has been slashed. On existing appeals, backdating will still cover the period between April 2010 and the 1st April 2015. However, if you apply for a rates review after April 2015 there will be no backdating of savings.

This one change has huge consequences for businesses who feel that they’re getting a raw deal on their business rates and are yet to lodge an appeal.

Impact of Autumn Statement announcement (pre and post April 2015)*

 

Rates year Savings
Pre-April 2015 Post April 2015
2010/2011                    2,000 No savings
2011/2012                    2,000 No savings
2012/2013                    2,000 No savings
2013/2014                    2,000 No savings
2014/2015                    2,000 No savings
2015/2016                    2,000  2,000
2016/2017                    2,000  2,000
Total savings                  14,000  4,000

*Basic example to demonstrate impact of rates deadline and excludes impact of transitional relief and inflation on savings.

We still await the full government regulations to support this announcement but companies contemplating a rates review should make their mind up quickly. Business rates appeals are not always recommended, so it is advisable to take early professional advice to determine if an appeal should be lodged.

For our rating team to take a ‘no obligation’ look at your rates, please initially send through a copy of your current rates bill. We will then be in touch to discuss some information about your property to determine if we can help you.

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