The 2023 Rating Revaluation is now only weeks away, it’s effective date being 1 April 2023, and all the proposed Rateable Values are available online.
Here are some of the significant factors which will impact on business rate liability and on ratepayers from this date:-
- The multiplier/UBR – this has been frozen at the existing rate 49.9p (with the additional supplement for Rateable Values greater than £51,000 of 1.3p also retained).
- Downward transitional phasing – this has been scrapped meaning full reductions will be enjoyed from day one.
- Upward transitional phasing – this has been retained but on medium (more than £20,000) and larger (over £100,000) Rateable Values increases will still be 15%/30% in year one rising to a maximum of 55% in year 3.
- Retail, leisure and hospitality support – in 2023/24 these sectors will receive relief equivalent to 75% of rate bills (subject to a cap of £110,000 per business).
- Small Business Rate Relief Scheme – those losing small business rate relief will see rate increases capped at £50 per month.
- Period of List – the new Rating List will last for 3 years prior to revaluation (not 6 years as last time).
- Property Improvement – from April 2024 a one year exemption will apply to rates increases bought about by property improvements which increase the Rateable Value, subject to continued occupation.
- Annual Confirmation – this onerous provision will require ratepayers to confirm annually that the data held on their property remains correct!
Whilst the freezing of the multiplier/UBR appears generous, historically the re-basing of the same ensured a similar total revenue from the year before, based on the revised total Rateable Values, subject to some adjustment to facilitate anticipated reductions following successful Appeals. This however has not been adopted this time albeit nor has the normal increase reflecting the movement in CPI the previous September, which was 10.1%!
For further advice in relation to business rates matters please contact Neil Cooper, Head of Professional Services at email@example.com