Budget 2017 - Some relief for business rate payers
The Chancellor of the Exchequer provided some relief for rate payers in his budget on 22nd November. These changes were generally welcomed by the property industry and targeted some key areas of complaint:
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The annual increase in the multiplier from next April will be calculated using the Consumer Prices Index (CPI) stepping away from the Retail Prices Index (RPI). Currently inflation measured under CPI (September 3.0%) gives a smaller increase than RPI (September 3.9%). Rate payers will still need to check any transitional arrangements for their assessments.
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The so-called “staircase tax”, which caught occupiers in multiple floors or units in a building by treating each as a separate rating assessment, will be abolished. This affected units that did not directly interconnect but were separated by, say, a common stairwell. Rate-payers should now be assessed on a single unit of occupation.
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The frequency of revaluation will be shortened. The revaluation in 2017 was the first since 2010 and it brought some big changes in rateable values reflecting how the property market had moved in the seven previous years. The pattern will now change to three yearly which should smooth some of these peaks and troughs. The change comes into effect from 2022.
If you would like to discuss any commercial property agency or management matter, please contact Richard Grassly on 01483 300233 or richardg@rhrwclutton.co.uk
