May

Government ‘removes uncertainty’ for commercial tenants by postponing next business rates review

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The planned 2021 Rates Revaluation, which had been brought forward, is now to be delayed until 2022, Secretary of State Robert Jenrick has announced today.

Commercial landlords will hopefully have happier tenants today after the government revealed that its contentious 2021 Rates Revaluation process is to be postponed.

This will give thousands of high street business owners a much-needed boost by removing the likelihood of business rates increases threatened by the review, which had been brought forward from 2022.

The Valuation Office Agency (VOA) regularly reassesses and updates the rateable values of all business properties.

This is called a revaluation and, the VOA claims, is completed to keep the system fair by redistributing the total amount payable in business rates as property values fluctuate.

“We have listened to businesses and their concerns about the timing of the 2021 business rates revaluation and have acted to end that uncertainty by postponing the change,” says MHCLG Secretary of State Robert Jenrick.

“Now is the time for us to continue to focus on supporting businesses affected by the pandemic, including through our unprecedented package of almost £10 billion in business rates relief.”

Unfair to many

Mike Flecknoe of Cushman & Wakefield, comments: “If the revaluation [had] proceeded, rates liability based on pre-COVID valuations would have seemed unfair to many.

“However, there will be other ratepayers whose future 2021/22 rates liability will seem excessive being based on valuations dating from April 2015.

“It remains to be seen whether the future revaluation will now be effective from April 2022 as originally planned.

“Key will be the valuation date – April 2020 or 2021 – which will determine new rateable values and liability. “It is extremely hard to see how the VOA can accurately value all non-domestic properties as at April 2020 given our current circumstances. It would be better to have a valuation date of April 2021 and move to a 12 month period between valuation date and revaluation.”

Read the full announcement.

View Full Article: Government ‘removes uncertainty’ for commercial tenants by postponing next business rates review