New business rates, coming into effect from April 2017, are to have dramatic impacts on businesses of all sizes and types across the UK.
Business rates, also known as non-domestic rates are taxes that are chargeable on all different types of commercial properties across the UK, from retail and industrial properties to offices.
According to research by JLL, businesses in around 40% of locations in the UK will be hit hard as a result of the revaluation, while 28% will benefit from reduced rates and the rest with none or little affect.
Retail businesses in central London are one of those who will see a huge increase in business rates. For instance, shops in Regent Street will see an average of 87% increase in their rates from April 2017. Furthermore, rates for Oxford street retail premises have increased by 65%, while Bond Street has gone up by 100%.
Verde & Co, a shop owned by the award winning writer Jeanette Winterson in Spitafields, London, is a prime example. With the property’s rateable value going up by 151%, from £21,500 to £54,000, this has caused the shop to close.
The mayor of London, Sadiq Khan has raised his concern about how the increase in business rates are a real “kick in the teeth” for the businesses in the city.
Reading and Guildford are other locations which saw an increase in business rates.
Some of northern towns, conversely, saw a significant drop in rates, such as Blackpool and Bolton with a reduction of up to 56%.
Paul Eaton, National Head of Business Rates at Lambert Smith Hampton, has advised businesses to consider appealing on their 2010 rates in order to potentially benefit from transitional relief. He commented:
“29% of the challenges received by the VOA up to 30 September 2016 resulted in a change to the 2010 rating list entry. If we extend that percentage to those assessments that have not yet been challenged, it could mean that a further 261,000 assessments are due a refund.”
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