Occupiers and owners of buildings with more than one occupier could face a further rise in their business rates from April 2015 as the Valuation Office (VOA) applies new valuation methods to multi-occupied buildings.
Last year, a significant Supreme Court decision ruled individual floors in buildings with more than one occupier should be treated as separate rating assessments. Historically, occupiers on more than one floor received a single rates bill with discounts due to the size of assessment. These so-called 'quantum reductions' could be as generous as 10%, and are now under threat of reassessment and removal of any discounts.
The VOA will now treat different areas of the same building (which are accessed through communal areas) as separate premises for business rate purposes.
This change could mean that you are issued separate bills for different parts of your property and your overall rates bill could increase.
Further to this, the change could affect the business rates you have already paid, as any changes to your business rates are likely to be backdated to whichever is the most recent:
- 1 April 2015 in England (or 1 April 2010 in Wales) or
- the date you became the occupier.
The VOA will contact taxpayers affected by the changes.
Want to know more about the changes? Check out our article here in which we discuss the changes in more detail.
If you have any questions, or would like further advice on this topic, please contact Phil Vernon, Helen White or your usual PwC contact.