You’re probably aware that changes to business rates in 2023 are imminent, due to the Business Rates Revaluation 2023 and the issue of the Draft Rating List by the Valuation Office Agency (VOA) last November.
The List outlines the new rateable values (RVs) for all commercial properties in England. It will come into effect on 1st April 2023.
The updated values reflect the property market as of 1st April 2021 and, while some sectors benefit, others have been hit hard by the Business Rates Revaluation 2023.
The retail sector, for example, will see an average RV decrease of 10%, but the industrial sector, which was booming in 2021, has been hit with a hefty average 27.1% increase, although this is only an average and we are seeing some significant variances. For example, some Birmingham Business Park draft rateable values have increased by over 50%!
Martin Cook, KWB’s Head of Valuation & Lease Advisory and specialist advisor on business rates, said: “If you haven’t yet acted on your business rates, we encourage you to do so now. It will enable you to plan for the year ahead and check for any errors in the valuation. You may also be eligible for financial support from the government.”
KWB Business Rates Revaluation 2023 checklist
The following checklist shows you how to work out your new business rates and see if you qualify for relief.
Check your rateable value
Click here to check your draft 2023 rateable value. Searching by postcode is usually the easiest way to find your draft rateable value.
How to calculate your new business rate
Multiply your rateable value by the relevant multiplier. Multipliers remain the same as 2022/2023 levels: 49.9p for occupied property under £51,000 rateable value and 51.2p for all property with a rateable value over £51,000.
Relief for the retail, leisure and hospitality sector
75% on occupied property up to a maximum of £110,000. Click here for more details.
Small business rates relief
The 2017 threshold remains in place: under £15,000 rateable value. Click here for more details.
Empty buildings relief
The 2017 criteria and threshold remain in place. Click here for more details.
Transitional relief scheme
Small, medium and large properties can benefit from upwards caps in the first year of rates payable, of 5%, 15% and 30% respectively. The aim is to help those ratepayers facing an increase as a result of the Business Rates Revaluation 2023.
No downwards caps apply, meaning ratepayers will receive the full benefit of properties that have decreased in rateable value – such as many retail properties. Click here to apply.
Time is also running out for checking and challenging the 2017 rating list. All checks must be submitted by 31st March 2023. If you haven’t already, it is worth reviewing your current rateable value for accuracy because, if a reduction is warranted, it could be backdated as far back as 1st April 2017.