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Think you’re paying too much after 2023’s Business Rates Revaluation? Speak to one of our experts to find out how we can reduce your business rates liability.
Business rates are taxed on most commercial and industrial properties, such as shops, offices, restaurants, pubs, warehouses, factories, hotels and other holiday homes. Local councils collect these taxes to help fund public services.
Business rates in England and Wales are calculated by applying either a ‘standard’ or ‘small business’ multiplier to the rateable value of your property. Multipliers are different for England, Wales and the City of London.
Changes in the property market are reflected in the rateable value of non-domestic properties.
These values are updated periodically during ‘business rate revaluations’ by the Valuation Office Agency (VOA).
The changes are designed to account for the changes in property prices and maintain fairness in the tax system.
The most recent business rates revaluation came into effect from 1 April 2023, based on property values as of 1 April 2021.
Previously, the last revaluation had been in 2017. As an outcome of the UK Government’s Business Rates Review, revaluations are expected to take place every three years, with the next due on 1 April 2026, based on property values as of 1 April 2024.
Surveyors use four categories to group sectors in England and Wales:
• Retail (e.g., shops, hotels and pubs)
• Industry (e.g., warehouses)
• Office (e.g., headquarters)
• Other (e.g., car parks, cemeteries, film and TV studios)
Due to the impact of COVID-19, retail in England and Wales saw, on average, a 10% decrease in their rateable values. Other sectors saw growth so their rateable values increased, with industry rising 27.1%, office rising 10.2% and other rising 4.2%.
The pandemic also impacted people’s use of offices, with London seeing the lowest increase in rateable values due to the rise of remote working.
Across all sectors in England and Wales, business rates rose on average by 7.1%. To protect high streets from rising inflation, the UK Government froze the business rates multiplier for 2023-24.
Business rates are one of the most considerable overheads for companies. As they are based on an annual rental estimate, many businesses can find that they’re overpaying. Fortunately, our experts can reduce your business rates liability by challenging your property’s valuation.