The Valuation Office Agency releases draft Rateable Values for 1.94 million commercial properties today. This is the first revaluation for seven years and will include some changes to the rating system, including a new appeals system.
Phil Vernon, Head of Rating at PwC said:
“The publication of draft rateable values will give business occupiers (and owners of empty properties) the starting point for the calculation of tax from April 2017. However, it does not outline the amount of rates payable on each assessment, and business occupiers will need to wait for detail on the accompanying tax rates, reliefs and exemptions.
“The draft Rateable Value cannot be appealed until the right to challenge the assessment opens on 1 April 2017, when a new appeals system takes effect.
“Under the current appeals system, the Valuation Officer’s initial assessment can be challenged as a matter of course, starting a programme of informal negotiation and ending in an appeal to a Tribunal. From April, Ratepayers will be expected to complete two preliminary stages (check and challenge) before a full appeal can be progressed. Both stages will require full valuation detail being submitted by the ratepayer with penalties for inaccurate or misleading information. In addition, digital accounts will be required in order to progress through these preliminary stages.
“The new system will have time limits built in to resolve appeals but it’s likely that these limits could prevent any appeal being settled for at least 18 months. In many case it may take several years for appeals to be formally settled.
“Controversially, proposals contained in the draft legislation suggest that appeals will only be allowed if the Ratepayer, or their Agent can prove that the Valuation Officer's valuation is outside the bounds of reasonable professional judgement. It will be open to interpretation by the Valuation Officer Agency and ultimately the Tribunal Service as to what that means in practice.”
For more information, please contact Phil Vernon, or your usual PwC contact.