New 2005 Rating List
The new 2005 rating list commenced on the 1st April and will stay in force until the next revaluation planned for 2010.The new rating list assessments are meant to represent the annual rent the accommodation would let for on the open market as at the statutory fixed valuation date 1st April 2003.
The previous revaluation was based on the rental market of 1998 and the changes in the property sector over these five years will have significant variations in the degree of change across the country. Overall the increase in England , Scotland and Wales ranged from 12% to 17% on average. However, this masked some major increase in areas such as the Leisure Sector and Out of Town Retail.
Transitional Relief
Has the rate liability increased under the 2005 List.
In general terms the rate liability is calculated by applying a multiplier known as the Uniform Business Rate (UBR) to the assessments rateable value. This UBR is set at the start of each rating list and then adjusted each year by the rate of inflation. Thus the change in the rating liability is a combination of the new rating assessment and the new UBR.
At the start of the 2005 list the UBR was reduced across England , Scotland and Wales. As a result, those ratepayers who did not have an increase in their rating assessment have benefited from a reduced rates liability. However, in many cases, the fall in the UBR has not outweighed the increase in the rating assessment and rate liability has increased accordingly.
In order to protect business's from significant changes in rate liability the legislative introduced Transitional rate relief for both England and Scotland. This relief sets clear parameters by which the liability cannot fall below or rise above within any given year. For further details of the phasing limits and uniform business rate multipliers for each region click on the link below.
Rating Data for England 2008
Rating Data for Scotland 2008
Rating Data for Wales 2008
Appeals
For both England and Wales there is no time restriction on lodging an appeal but there remains a six month period in Scotland. The legislation has restricted the number of appeals allowed for each ratepayer to one per change in circumstances. In view of these circumstances, professional advice should be sought before using up this restricted right.
Supplement Charge Business Improvement District
In addition to the normal rate liability, the Government has recently granted the Local Authorities the right to charge an additional rate supplement. This charge will apply to commercial properties in an area which is designated as a Business Improvement District (BID). The Council can only designate an area as a BID when the majority of ratepayers agree. The idea is simply that any additional charge collected will be spent in the BID on specifically agreed improvements.
Further details and a list of the
current Business Improvement District Schemes can be found at www.ukbids.org
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