The Valuation Office (VO) will be revealing the new 2017 draft Valuation List to-morrow. Although in draft form this for all intents and purposes will be the rateable value on 01 April 2017. The new Valuation List will replace the current List which came into force on 01 April 2010. This should have been replaced in 2015 but Government delayed a revaluation, principally because of the 2011-2013 recession.
The draft list can be viewed at www.gov.uk/introduction-to-business-rates/revaluation
The new List reflects a valuation date of 01 April 2015 when the market was recovering. It remains to be seen whether there will be a significant rateable value differential over the 2010 Valuation List which reflected a valuation date of 01 April 2008.
However, early indications from the VO suggest that property surrounding London and the South East is likely to see a significant increase in Rateable Value. For UK wide portfolios, this increase may be balanced or mitigated by reductions in Rateable Value in the northern regions of England.
As always there will be winners and losers in this revaluation which we expect to be subject to a diluted Transitional Phasing regime whereby increases and decreases in liability are phased over the life of the Valuation List. Properties with RVs in excess of £100,000 are likely to be penalised.
Transitional relief will therefore continue to have implications for Appeals strategy. There are various important changes proposed to the rating List which have yet to be confirmed. These include proposals for a financial charge for making an Appeal which maybe subject to possible new time limits.
We will provide a more detailed briefing note after to-morrow’s announcement but hopefully the enclosed gives a taster of what is to come…
3PL Real Estate Limited-29-09-2016
