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The latest round of property valuations for business rates purposes are now in full swing says commercial property agent Prop-Search.
Earlier this year, the Valuations Office Agency (VOA) started issuing questionnaires - Forms of Return - to thousands of businesses across England and Wales. The information will be used to update the rateable values of business premises as at a nominal date of 01 April 1 2015, with this forming the basis of the business rates to be charged from April 2017.
Businesses will have 56 days within which they have to complete and return the forms. And just like a tax return, it is vital that these are completed accurately and on-time or a business could find itself facing a £100 fine, as well as paying the wrong amount of business rates in 2017.
Chris Billson, a Director at Prop-Search, said: “Controversially, the Rating Revaluation was a postponement of a revaluation which should have been implemented in 2015, with the Coalition's rationale being to avoid sharp changes in rates bills. There have been mixed views relating to the postponement, with some parts of the country eagerly awaiting a revaluation and others parts - particularly London - nervous about the prospect of sharp increases.”
“The Chancellor’s Summer Budget revealed that revenue from business rates is expected to increase from £28 billion in this financial year to £32.9 billion by 2020/21 - due to annual inflation linked increases as well as the 2017 Rating Revaluation.”
The purpose of the revaluation is to establish a nominal open market rental value for business premises. Business rates are charged on all non-domestic properties that do not qualify for an exemption - some 1.8 million properties liable in England as at September 2013.
Business rates typically have to be paid if a building or part of a building is used for non-domestic purposes. However there are exemptions, such as farm buildings and land, places of public religious worship, e.g. listed buildings and church halls; buildings used for training or welfare of disabled people.
Chris adds: “You don’t usually have to pay business rates for home-based businesses if you use a small part of your home for your business; such as a bedroom as an office or sell goods by post. However, you may need to pay business rates as well as council tax if your property is part business and part domestic - for example you live above your shop; sell goods or services to people who visit your property or you employ other people to work at your property.”
Further information or advice can be obtained from Prop-Search - Tel: 01933 223300 / 01604 492000 or its website: www.prop-search.com