What are Business Rates
If you are a business owner, you should be familiar with the concept of business rates. For those that are not, business rates are effectively a tax levied on premises used for non-residential or commercial purposes and are predicated on the property’s ‘rateable value’ i.e. its open market rental value.
If you are a business owner and would like to see your ‘rateable value’, this is something which is published online. The government has set up a facility by which you are able to obtain details as to the property’s ‘rateable value’ and provide you with an estimated business rates valuation. In this respect, please see the following link www.gov.uk/correct-your-business-rates.
Proposed Adjustment
It has been well publicised of late that many business owners in England and Wales are becoming concerned by the Government’s recent proposals to adjust business rates.Generally business rates are adjusted every 5 years. However, due to a delay by the Government, the last time a business rates adjustment took place in England and Wales was 1st April 2010. Business rates are therefore set to be adjusted in April 2017 and, due to the delay, are significantly more noticeable than previous increases.
The proposed adjustment to business rates has been met with widespread concern and criticism as many businesses are being subjected to significant increases. This is not a localised problem but appears likely to impact businesses across England and Wales. Many businesses have even reported that they may have to close due to an inability to meet the increased tax, with some business owners reporting an increase of up to 400%.
The Federation of Small Business has recently (“FSB”) warned in particular that London is in ‘serious danger of losing its vital support system of micro and small businesses’. The FSB has further elaborated to confirm that from April 2017 the average small business (with less than 10 employees) will have to pay £17,000.00 to cover business rates.
A frequently cited concern in respect of the rising business rates is that online retailers are unlikely to see much change, if any, and will have a further distinct edge over high street shops.
The Government’s Stance
The Government has offered its comments to this matter and has accused the media and ratings agents of ‘scare-mongering’. It has also now been claimed that 600,000 small businesses across the country, as a result of the adjustment, will be paying no business rates at all. Additionally, the Government has claimed that £3.6bn has been introduced to support companies affected by the adjustment.It would appear that some businesses are indeed set to benefit from the upcoming adjustment, although those within this category seem to be only a fortunate few.
If you own or are purchasing a commercial or non-domestic property in England or Wales, the business rates adjustment is likely to affect you and it is something which ABD strongly suggests that you investigate.
If you would like to know more, please contact me.
Oliver Gray
Trainee Solicitor - Commercial
 |
| Oliver Gray - Trainee Solicitor Commercial Department |
Oliver Gray is a Trainee Solicitor
who works in the Commercial
Department dealing with all areas
of commercial work including
contentious and
non contentious work.
He is based at the firms
Marlborough office.
