Letters outlining new business rateable values, which will take effect from 1 April 2023, have been dropping through letterboxes in England and Wales.
The Valuation Office Agency (VOA) has updated the rateable values of all businesses and other non-domestic properties.
With the current rateable values being based on rental levels prevailing seven years ago, there are likely to be big changes following the 2023 revaluation.
Businesses will have received a rates bill from the local council in February or during March, for the upcoming 12 months.
They will be based on the property’s ‘rateable value’, the estimated value on the open market.
The rateable value for your property is not what you pay in business rates or rent, but is used to calculate your business rates bill.
What are business rates?
Business rates are a tax on property used for business purposes, whether a commercial property like offices, shops, pubs, warehouses or possibly from home.
In fact, most non-domestic properties will attract business rates. They may also be charged where only part of a building is used for non-domestic purposes. The Government has also announced a package of rates relief for businesses as part of the Autumn Statement 2022.
It says it has also pledged to reform the business rates system by delivering more frequent business rate revaluations.
Changes to business rates in 2023:
· Business rate multipliers will be frozen from 2023-2024. The multiplier represents the number of pence in each pound of the rateable value that will be payable in business rates before any relief or discounts are applied
· A transitional relief scheme will cap bill increases caused by changes in rateable values at the 2023 revaluation
· For retail, hospitality, and leisure business rates relief will be increased from 50 per cent to 75 per cent (up to £110,000 per business) in 2023-24
· The increases are capped at £600 per year from April 2023 if businesses lose their eligibility for small business rates relief as a result of the revaluation
Need help with understanding changes to rateable values and related matters? Contact us.
