Review of the Business Rates System – Rating Revaluation 2023
Following a review of the business rates system in 2021*, the Government have announced a couple of important changes to the rating system.
- The next Rating Revaluation will take place in 2023
- Revaluations will take place every three year thereafter
The next Rating Revaluation will take place in April 2023 and it will be based on rental values at April 2021, which was a difficult year to value because of COVID-19. Like every Rating List, there will be winners and losers of the rating revaluation. The 2023 revaluation will be no exception. It is likely that retail rateable values will reduce considerably and large warehouse rateable assessments will double, as demand and rent for the industry increase following the boom of online sales.
Rates payable are directly linked to a property’s Rateable Values. Rateable Values are historically reviewed every 5 to 7 years. From 2023, revaluations will take place every three years. This change will make the system fairer and more responsive for all ratepayers, meaning bills will more closely reflect current rental values. In my view, having your Rateable Value reviewed more regularly is a welcome addition.
In my next article, we will look at the final piece of the puzzle – Transitional Relief, which limits the increase and decreases in rates payable following a revaluation. The Government are currently consulting on this issue and any policy changes are due to be announced in September.
The common misconception is that if your Rateable Values were halved, your Rates Liability would follow suit. This is not the case because of Transitional Relief.
Stay tuned for more information on 2023 Transitional Relief scheme.