Hold onto your seats because the Non-Domestic Rating Bill will receive Royal Asset this year with some game-changing measures. After years of reviews and consultations, the government is introducing the biggest shake up of the business rates system in a generation. Take note of the key changes:

Revaluation Cycle (Clause 5)

We're shifting from 5-yearly revaluations to a much snappier 3-yearly cycle. Starting from the 2026 Revaluation, we'll be moving to regular 3-year rating lists. The antecedent valuation date however stays two years before the rating list takes effect. With more frequent revaluations, our tax base will be more up to date with market rental values.

Transitional Relief (Clause 6)

The transitional relief scheme will no longer have to be revenue neutral. This means we will be waving goodbye to downward transition. If your rateable value drops after a revaluation, your rates bill will drop accordingly. This is positive news for many ratepayers.

Completion Notices (Clause 7)

Completion notices used to be exclusive to 'new buildings,' but not anymore. The Bill is changing the game, allowing completion notices for refurbished buildings too. Once this loophole is closed, Billing Authorities will be revving up to bring refurbished buildings into the Rating List.

Provision of Information by Ratepayers (Clause 13)

The Bill is bringing two brand-new duties your way:

i) Within 60 days of becoming a ratepayer, you'll need to provide HMRC with a taxpayer reference number (National Insurance or VAT number).
ii) Keep the Valuation Office in the loop about any changes to the ratepayer or physical changes to the property impacting the Rateable Value, within 60 days of the change.

The Bill introduces penalties for non-compliance or false returns with significant fines. The provision of false information is also made a criminal offence. Although these duties will be phased in over the next few years, they are very onerous on ratepayers, particularly the smaller ones, who may not be professionally represented.

Material Change of Circumstances (MCC) (Clause 14)

The Bill has some eyebrow-raising changes to MCC appeals. Any legislation or guidance resulting in change to the 'physical enjoyment of the hereditament' or 'matters physically manifest in the locality' will no longer be an MCC. So, if future legislation restricts the use of a property due to a pandemic, congestion charge zone, licensing hours etc. you can't use it as grounds to appeal.

With all these changes on the horizon, ratepayers will require well informed professional advisors. Please contact us for further information.

Bjorn Bowles