THE NEXT REVALUATION The Non-Domestic Rating (Lists) Bill was introduced in the House of Lords on 18th March 2020.
purposes of new local and central non-domestic Rating Lists when next compiled.
That Bill sought to implement commitments made at the Queen’s Speech on 19th December 2019 to bring forward the next business rates Revaluation by one year, to 1st April 2021.
At this stage it is hoped that the crisis will be behind us, and we will have a fuller and clearer picture of the effects on property and market rents as business confidence recovers.
Ordinarily, this would have been universally welcomed, but the pandemic changed the landscape considerably. These are clearly unprecedented times, which required unprecedented and continued decisive action to be taken by Government.
If the bill hadn’t been withdrawn, Rateable Values would have been based upon facts at a material date a year before COVID-19 adversely affected the economy. This would have had the devastating impact of setting valuations at an artificially high level, especially for the retail, leisure and hospitality sectors which will need time to recover.
On 6th May 2020, Communities Secretary Rt Hon Robert Jenrick MP announced a Revaluation of business rates would no longer take place in 2021 in order to help reduce uncertainty for businesses affected by the impacts of COVID-19. In our opinion, the Rating Lists (Valuation Date) (England) Order 2018 No. 553 should be amended to establish 1st April 2021 as the day by reference to which all non-domestic properties must be valued for the
The business rates ‘holiday’ introduced for these sectors in 2020/21 made the case even more compelling; given retail, leisure and hospitality account for 37% of all properties liable for business rates. In reverting to a 2022 Revaluation, resources at the Valuation Office
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With the offices of the Valuation Office Agency temporarily closed and the Valuation Tribunal Service not set to hear cases until 30th June at the earliest, outstanding appeal cases will continue to rise; running the risk of starting a new cycle with a backlog despite the additional funding allocated at the Budget. The Valuation Office Agency holds a comprehensive set of data for a 1st April 2019 AVD. This baseline data, together with public sector data and emerging detail from all parties, could be used to create a focused “tone” setting for bulk classes going forward. In delivering a 2022 Revaluation and ensuring an accurate reset can take place, the AVD should be revisited and amended from 2 years to 1 year prior to Revaluation.
A Revaluation in 2022, with an Antecedent Valuation Date in 2021, would provide a complete reset of Rateable Values, taking into account the state of the market after the crisis has passed. Mike Dunlevey, Senior Director, Altus Group
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Given the economic impact of COVID-19, and the downward pressure this will ultimately have on open market rents, especially in those sectors adversely affected, Government was lobbied to revert to the default position and withdraw the bill.
Agency tasked with finalising a 2021 Revaluation can now turn to the settlement of outstanding 2017 List appeals, providing business with a tax stimulus.
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