Businesses in England are being urged to submit a valid rates appeal before the Government’s deadline of 31st March 2015 for backdated revaluation claims (for commercial properties) has passed.
After staffing costs and rent, the rates businesses pay are likely to be their third largest expense, which means it is essential for any business to challenge whatever appears to be an unfair demand.
The Chancellor announced in 2014 that a business rates appeal submitted after 1st April 2015 will not be backdated to the period 2010 to 2015.
Therefore, this means that if a business submits an appeal and the rateable value of its property is reduced following the appeal, that same business will fail to receive all the potential refunds of business rates for the five years from 1st April 2010 to 31st March 2015.
As from 1st April 2013, local councils in England have been allowed to keep 50 per cent of the revenue gained from any increase in business rates they collect, rather than being required to transfer the additional amount to the Government.
The next revaluation of commercial properties, for rates purposes, is due to come into effect from 1st April 2017.
As business rates are a devolved tax, the deadlines for valid appeals may vary between Scotland and Wales – Northern Ireland has separate rates – but those affected in England should make their appeal as soon as possible, in order to avoid losing backdated refunds.
