Business Rates Revaluation 2017 - PowerPoint Presentation

1. Business Rates Revaluation 2017Presentation for Streatham BID

2. IntroductionFrom the 1st April 2017 there will be a Revaluation of all business premises in England. Rateable values are determined by the Valuation Office Agency, a department of HMRC.Rateable Values are based on the open market rental income and the square footage of a property divided by zonesTo check that your rateable value is correct please visit www.voa.gov.ukAll local councils have to charge business rates according to the rateable value supplied in the Rating List by the VOA, until such time as the List is amended.

3. New NNDR Charges from 1st April 2017 On the 13th March, new NNDR bills will be issued for the financial year 1st April 17 to 31st March 2018Many businesses in Lambeth will see an increase in their rateable value.For those that would otherwise see significant increases in their rates liability, the Government has put in place a £3.6 billion transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation. To help pay for the limits on increases in bills, there also have to be limits on reductions in bills. Under the transitional scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the appropriate multiplier). The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after 1 April 2017, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes. Changes to your bill as a result of other reasons (such as changes to the amount of small business rate relief) are not covered by the transitional arrangements.The transitional arrangements are applied automatically and are shown on the front of your bill.

4. NNDR BillsNational Non-Domestic Rating MultiplierThe council works out the business rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the standard non-domestic rating multiplier and the small business non-domestic rating multiplier. The former is higher to pay for small business rate relief. Except in the City of London where special arrangements apply, the Government sets the multipliers for each financial year for the whole of England according to formulae set by legislation.The provisional multipliers for 2017/18 are 0.466 and 0.479, we are still awaiting confirmation from Central Government that these are to be used.Business Rates InstalmentsPayment of business rate bills is automatically set on a 10-monthly cycle. However, the Government has put in place regulations that allow businesses to require their local authority to enable payments to be made through 12 monthly instalments. If you wish to take up this offer, you should contact the business rates team on 020 8315 2255 as soon as possible.

5. ReliefsSmall Business Rate ReliefRatepayers who occupy a property with a rateable value which does not exceed £50,999 (and who are not entitled to other mandatory relief or are liable for unoccupied property rates) will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier. In addition, generally, if the sole or main property is shown on the rating list with a rateable value which does not exceed £15,000, the ratepayer will receive a percentage reduction in their rates bill for this property of up to a maximum of 100%. For a property with a rateable value of not more than £12,000, the ratepayer will receive a 100% reduction in their rates bill. Generally, this percentage reduction (relief) is only available to ratepayers who occupy either- A - one property, orB - one main property and other additional properties providing those additional properties each have a rateable value which does not exceed £2,899.The rateable value of the property mentioned in (a), or the aggregate rateable value of all the properties mentioned in (b), must not exceed £19,999 outside London or £27,999 in London on each day for which relief is being sought. If the rateable value, or aggregate rateable value, increases above those levels, relief will cease from the day of the increase.The Government has introduced additional support to small businesses. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, the Government has confirmed that they will be allowed to keep that relief for a period of 12 months.An application form for small business rate relief is not required. Where a ratepayer meets the eligibility criteria and has not received the relief they should contact the business rates team on 020 8315 2255 or email nndr@Lambeth.gov.uk . Provided the criteria remains to be met the relief will automatically continue to be applied to the account for each subsequent year. Changes in circumstances will need to be notified to the council by a ratepayer who is in receipt of relief (other changes will be picked up by the local authority). The changes which should be notified are- the ratepayer taking up occupation of an additional property, andan increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.

6. Appealing your Rateable ValueThe Government consulted in October 2015 on proposals for a new three-stage approach to business rates appeals: Check, Challenge, Appeal. The reforms aim to provide a system which is easier to navigate, particularly for small businesses or unrepresented ratepayers, with the emphasis on early engagement by the parties to reach a swift resolution of cases. Under the reformed system, businesses will be more confident that their valuations are correct and that they are paying the right amount of business rates and any refunds due will be paid more quickly.The amended Regulations will apply only in relation to a rating list compiled on or after 1 April 2017.

7. Appeal - First StageCheck stageFacts concerning the property are agreed between the Valuation Office Agency (VOA) and the ratepayer. This is intended to be swift and to lead to an agreed position for the great majority of cases. Ratepayers will be able to repeat the Check stage as often as they wish

8. 2nd Stage - ChallengeChallenge stage Ratepayers who disagree with their rateable value following the ‘check’ process may initiate the ‘challenge’ stage. This must be initiated within four months of the end of the ‘check’ stage (although any case that has spent more than twelve months at ‘check’ stage will move on automatically). Ratepayers will be able to enter this stage immediately if they have “confirmed, within the last 4 months, that property specific details held by the VOA are correct”.A challenge must contain: • Details of the (legal) grounds for the challenge; • A proposed alternative rateable value;• Evidence or analysis supporting the proposed alternative rateable value. Challenges lacking these three elements will be returned as ‘incomplete’. If an incomplete challenge is to be resubmitted, this must be done within four months of the end of the ‘check’ stage. The VOA will then respond to the ratepayer’s arguments and evidence. It is expected that the information presented at the beginning of the challenge stage will normally be sufficient for the case to be determined:  

9. Challenge cont’d.It should not be assumed that new evidence or arguments, or amendments to the challenge, will automatically be accepted. It is therefore in ratepayers’ interests that they and their professional representatives make full disclosure of all relevant evidence at the beginning of the process.14 The Government will introduce a “pre-Challenge clearance process” to permit multiple ratepayers to provide evidence regarding valuations in their area. This in effect will allow the VOA to agree on a common approach for a group of businesses or a particular class of property, allowing quicker progress through the Challenge stage. If an agreement is not reached during the Challenge stage, the VOA will issue a decision letter setting out a summary of their decision on outstanding matters, with the reasons for their decision. This will formally end the Challenge stage and the ratepayer will have four months in which to lodge an appeal against the decision notice. Ratepayers will also have the right to move to appeal stage after 18 months at Challenge stage.

10. 3rd Stage - AppealAppeal stage Appeals will take place, as now, before the Valuation Tribunal for England which focuses on issues which remain outstanding and which are material, on the basis of arguments and evidence which have already been established The introduction of substantial new evidence at appeal stage by either party to the appeal will be restricted, save at the mutual agreement of the parties. There are time limits at each stage, to keep cases moving forward, with ‘trigger points’ at Check and Challenge stages, so the ratepayer can feel confident that they can progress the case even if no decision is made by the VOA. The great majority of ratepayers will experience the reformed system through the VOA’s new digital platform and associated guidance. This will provide for a clear and straightforward process, through a secure online account. No detailed knowledge of the Regulations will be needed to access the system, including for small businesses and unrepresented ratepayers. This approach forms part of the VOA’s wider transformation programme to modernise services. Fees:Fees charged for making an appeal is a new feature of the reformed system.  There will be no charges at Check or Challenge stage, where it is expectation that the majority of cases will be resolved. Fees will only be charged at Appeals stage

11. Appeal cont’dFee payable on making an appealDiscounted appeal feeSmall businesses£150£100Other businesses£300£200and where an appeal is successful the ratepayer will be refunded in full. Successful appeals are considered to be the ones for which, the VTE makes an order for the VOA to alter the rating list following the determination of the appeal. In cases where the VOA has failed to issue a decision at the Challenge stage, no fee will be payable. The proposed fee structure is as follows:

12. Contact DetailsFor general rates enquiries please contact the Business Rates team on 020 8315 2255 or email businessrates@Lambeth.gov.ukTo escalate your query please contact Maureen Smith on 020 7926 9876 or email mmsmith@Lambeth.gov.uk