The government has announced that April 1, 2015 will be the valuation date for business rates assessments for 2017 onwards.
The existing rates are calculated on the rateable value of a property, and revaluation usually takes place every five years. The last revaluation occured in 2010 and was based on 2008 rents. In 2012, the government postponed the date by two years to 2015.
“The business rates burden will be more fairly split from 2017 onwards and struggling Rochdale retailers will no longer be subsidising the luxury brands of Regent Street,” said Jerry Schurder, head of business rates at property consultancy Gerald Eve.
“But with modern technology, it should no longer be necessary for there to be two years between the valuation date and the issuing of updated business rates bills.”
He said the two year gap between valuation and implementation was too long, recommending it should be shortened to one year and that revaluations should occur more frequently.
“By announcing the valuation date as April 1, 2015, the government has missed its first opportunity to deliver on the administration review’s commitment to ‘strengthen the system’s responsiveness to changes in property values’ and ‘to enable tax assessments to be based on up-to-date property values’,” he said.