4 minute read
Preparing for the NI Business Rates
Your business rates are being reassessed as part of the Business Rates Revaluation 2023 for all commercial property in Northern Ireland and you could be paying more than you should. Property experts Mark Elliott and Andrew Coggins, both CBRE NI Senior Directors, explain why fi nancial directors should be aware of possible savings ahead of 1 April.
When is the Business Rates Revaluation 2023 and how will it affect corporate rates bills?
Andrew: “This year was always going to be challenging for the commercial property sector but, with recent political and economic developments, it has proved to be tougher than anticipated. It is therefore more important than ever for businesses to examine whether they can mitigate any costs or even make savings.
Land and Property Services (LPS) is in the process of carrying out its valuations and these new rates will come into effect on 1 April, 2023.
For some sectors, this will mean an increase, for others a decrease, while, for many, rates may remain the same. At the moment, many businesses simply accept new rates without realising they may be inaccurate. Remember: every business has a right to appeal its rates.”
How do I know if my rates are correct?
Mark: “In short, you don’t - without further investigation. The forthcoming revaluation is based on property values as of 1st October 2021, which was a very unstable time for the Northern Ireland property market. Subsequently, there is a greater chance that valuations could be incorrect, and it is therefore prudent for rate payers to ensure their valuations - which are used to calculate the rates payable - are accurate. The CBRE NI Business Rates team is ideally placed to provide advice on whether valuations should be appealed.”
Mark Elliott. Andrew Coggins.
Which sectors are likely to be the winners and losers in the forthcoming revaluation?
Mark: “Business rates are likely to be highly scrutinised in the context of the current market conditions impacting all businesses, and it is therefore unlikely that any business will see themselves as “winners” no matter the outcome of their new valuations. We do, however, anticipate that the retail, leisure and hospitality sectors will see reductions in their valuations, refl ecting the diffi cult trading conditions primarily as a result of the Covid pandemic. The industrial and prime offi ce sectors have fared more favourably in recent years, and therefore increases may been seen here. This is a broad analysis, with many contributing factors to be considered in each individual case, which again highlights the importance of ensuring your valuation is correct, and whether an appeal should be submitted.”
When should rate appeals be submitted?
Mark: “If it transpires that you are unhappy with your valuation when the list is published in April 2023, there’s an opportunity to submit an appeal at that time. We always recommend that you have your valuation checked before you submit an application, however, as there is the potential for the valuation to increase if LPS believes it to be incorrect.”
Do I have time to check if my current rates are correct for the past rates period?
Mark: “Yes. The rates you are paying now cover a three-year period from 1 April, 2020, until 31 March, 2023. You still have time to check if these rates are correct and, if they are not, you could be entitled to a backdated payment. It is worth having someone at CBRE review your rates and evaluate if there is a potential saving.”
How costly is it for a business to have its rates reviewed and appealed by CBRE?
Mark: “Our fee is based on a percentage of what you have saved from your appeal. This ensures that we only recommend submitting an appeal where we believe there is a case for a reduction in the valuation.” Andrew: “Businesses who have substantial commercial holdings will have hundreds of thousands of pounds to pay in rates annually. Those rates should be checked because savings could be considerable and far outweigh costs associated with the appeal process.”
Are there any other ways to save on rates?
Mark: “Now is the time for every business to assess their costs and outgoings. There are many business rates relief schemes, including small business rates relief, industrial relief, and vacant relief. At CBRE NI we can provide you with a detailed assessment of your valuation and recommend if you qualify for any of the rate relief schemes currently in place.”
