Business Rates Revaluation 2017

What are business rates

Business rates are a tax set by central government that is paid by the occupiers of all non-domestic properties.

Business rates are charged on most business properties such as shops, offices, pubs, warehouses and factories. However, the property doesn't have to be used for a business - if it is used for purposes which are not domestic it is likely to be rateable.

The rateable value is set by the Valuation Office Agency (VOA), not by local councils. Local councils then collect business rates on behalf of Central Government.

2017 business rates revaluation

The VOA is revaluing business rates nationally for the first time in seven years. This means that many businesses will have increased rateable values, a few will be lower and some will remain the same. The new rateable values will apply from  1 April 2017.

Who manages the revaluation?

The VOA is managing the revaluation process, not local councils like Wandsworth. The VOA is an agency of HM Revenue & Customs. 

How will the new levy be calculated?

The VOA will provide a new rateable value for each property based on the market rental value of the business premises two years prior to the new rateable values coming into effect, so in this instance 1 April 2015.

Checking your draft rateable values

All businesses in the borough were sent an information leaflet from the VOA at the start of October 2016 which includes details of how to view your draft 2017 rateable value and what to do if you think the details are incorrect. 

You can check your draft RV online at www.gov.uk revaluation

Appeal process 

You can appeal against the VOA’s revised rateable value for you property. Find out more about the appeal process on the GOV website.

Please note: you cannot appeal your new 2017 rateable values until after 1 April 2017. You are legally obliged to pay your business rates while awaiting an appeal outcome.

Business rates multiplier 

Business rate bills are calculated by multiplying a properties RV by the correct ‘multiplier’. The draft multipliers for 2017/18 have been published by central Government as follows:

  • Small Business Multiplier = 46.7p (draft)
  • Standard Multiplier = 48.0p (draft)

The 2017/2018 multiplier will be confirmed by the Government in January 2017. 

From April 2017 the small business multiplier will apply to businesses with rateable values below £51,000. The threshold has been increased from it’s current level of £25,500.

Transitional Arrangements 

Although some businesses will experience significant increases in their RV, the government has prescribed a transitional arrangement scheme which provides the greatest support to small and medium sized businesses. Under the scheme eligible businesses facing large increases will see their bills capped each year. 

A new Small Business Rates Relief (SBRR) scheme for 2017/18

The Government’s SBRR scheme is changing from 1 April 2017. Currently if an RV is under £6,000 then the business receives 100% relief and will pay no business rates. This relief then decreases by a sliding scale of 1% for every £60 RV up to £12,000 RV.

However from 1 April 2017 the RV threshold for 100% relief will increase from £6,000 to £12,000, with the sliding scale increasing from £12,000 to £15,000.

This relief is only available to ratepayers who apply to Wandsworth Council and who occupy either:

  • One property, or 
  • One main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,599.