Transitional relief
On 1 April 2023, the government introduced a new transitional relief scheme as part of the national business rates revaluation.
Rateable Values
The Valuation Office Agency (VOA) carried out a national revaluation which came into force on 1 April 2023. Rateable values are based on rental values; rateable values in each sector should now therefore reflect the open market rental value of each property as estimated by the VOA on 01 April 2021. If you think your rateable value is incorrect, Vickery Holman can help.
Many sectors faced significant changes between the rates paid throughout the 2017 Rating List and the rates payable from 1 April 2023, but the amount a business rates bill can go up is limited each year under the transitional relief scheme. These limits are based on your rateable value; the maximum transition increase percentages are shown below:
| Rateable value | 2023 to 2024 | 2024 to 2025 | 2025 to 2026 |
| Up to £20,000 | 5% | 10% plus inflation | 25% plus inflation |
| £20,001 to £100,000 | 15% | 25% plus inflation | 40% plus inflation |
| Over £100,000 | 30% | 40% plus inflation | 55% plus inflation |
This means that, from 1 April 2024, occupiers are going to see their business rates bills increase and, from 1 April 2025, bills will increase even further.
Appealing
Action can be taken now to ensure you are paying only what you should, now and in the future.
The VOA assess the rental value of retail, office and industrial properties by applying a rate per square metre to the floor area. It is therefore important to ensure the floor area informing your rateable value is correct as, if the VOA are basing their assessment upon too high a floor area, your rateable value could be too high. It is also possible to inform the VOA you think the actual valuation (price per square metre) of your property is wrong. This needs to be proven with reference to comparable evidence around 1 April 2021.
The rateable values of trading entities such as holiday parks, pubs and hotels, are calculated by reference to the fair maintainable turnover (FMT) of the actual business. For these property types, it is therefore important to ensure the FMT the VOA are basing their assessment on fairly reflects the actual turnover of your business.
Business Rates Transitional Relief 2024
Vickery Holman can tell you if they think it will be possible to have your rateable value reduced and can work with the VOA on your behalf by following the Check, Challenge, Appeal (CCA) process. We are always happy to have an initial conversation to see if we can help; please do get in touch with our Business Rating Consultancy
Or you can email us on [email protected]
Our Rating Consultants have an excellent track record in checking and challenging business rates. Take a look at some recent examples of savings we have made on behalf of our clients.
