Commercial property occupiers have less than 60 days left to appeal against their business rates — or run the risk of losing up to five years’ worth of savings.
The warning comes from one of the West Country’s leading commercial property specialists which claims that any appeal submitted after the 1 April will not be backdated to cover the 2010-15 period.
Explaining the deadline dangers Paul Matthews (pictured), head of Bruton Knowles’ Bristol office, said that under the rule changes — unveiled in the Chancellor’s 2014 Autumn Statement — a property with a rateable value of £200,000, which is then reduced to £160,000, would result in a saving of £126,084 up to 31 March, 2017.
But only if the appeal is lodged on time. If an appeal is submitted after the end of March cut-off the savings are reduced to £39,880 — resulting in potential lost savings of £86,204.
“This proposal was not widely anticipated and for those ratepayers who, following the Government’s postponement of the 2015 revaluation until 2017, have been more relaxed about reviewing the rateable value of their properties,” said Matthews, stressing there is now an urgency to take action.
Business rates are the third biggest outgoing for most companies and organisations, after rent and staffing costs, which is why his agency is urging occupiers to take advantage of any potential savings by submitting their appeals well before 31 March.
“With the Government having already hit businesses in the pocket with the postponement of the 2015 rating revaluation for two years, missing the opportunity to get something back would just add insult to injury,” he added.
“Appealing without taking proper advice can be a risk because there are many assessments out there which could rise if an appeal was lodged. Local, expert advice is essential.
“It is also worth remembering that appealing the rateable value is not the only route to reducing business rate liabilities,” concluded Matthews.
Story: Cliff Goodwin
Photo: via empica
