Published on Friday, 3 February 2017
Small business relief has increased for properties with a rateable value up to £12,000. So properties with a RV below this figure will be entitled to 100% relief for the full Rating List which we believe will be for the next 5 years. Small Business Rates Relief will only apply where the rate payer has only one commercial property.
The Rate in the £ will be 46.6p (UBR) for small properties for 2017-2018 financial year.
The definition of small property is having a RV below £51,000 (note it was £18,000 in the last list).
Properties with a RV above £51,000 will have a UBR charged at 47.9p for 2017/18.
Transitional Relief will be applied to Rateable Value movements between the 2010 and 2017 Rating Lists. This will be applied having regard to the rates payable for the past year up to 31st March 2017, assuming the standard rates weres being paid for that full year, and that rates payable will be the base figure for the ongoing years following the 2017 revaluation.
Transitional Relief will be applied to increases and decreases in the Rateable Values and caps on reductions and increases in liability will be as follows:
Upward Cap:
For properties with RV in the 2017 Rating List up to £20,000 the caps on increases will be phased as follows:
2017/18 …………5%
2018/19………….7.5%
2019/20………….10%
2020/21………….15%
2021/22…………15%
For properties with RV in the 2017 Rating List between £20,001 and £100,000 the caps on increases will be phased as follows:
2017/18 …………12.5%
2018/19………….17.5%
2019/20………….20%
2020/21………….25%
2021/22………..…25%
For properties with RV in the 2017 Rating List over £100,000 the caps on increases will be phased as follows:
2017/18 …………42%
2018/19………….32%
2019/20………….49%
2020/21………….16%
2021/22………..…5%
The Downward Caps are as follows:
For properties with RV in the 2017 Rating List upto £20,000 the caps on decreases will be phased as follows:
2017/18 …………20%
2018/19………….30%
2019/20………….35%
2020/21………….55%
2021/22………….55%
For properties with RV in the 2017 Rating List between £20,001 and £100,000 the caps on decreases will be phased as follows:
2017/18 …………10%
2018/19………….15%
2019/20………….20%
2020/21………….25%
2021/22………..…25%
For properties with RV in the 2017 Rating List over £100,000 the caps on decreases will be phased as follows:
2017/18 …………4.1%
2018/19………….4.6%
2019/20………….5.9%
2020/21………….5.8%
2021/22………..…4.8%
Please be aware of these transitional relief adjustments as they will clearly effect many businesses who might think they will benefit straight away from RV reductions coming in the 2017 Rating List.
Without doubt Business Rates are a complex issue. If you require any further information or advice please call the Clark Weightman team on 01482 645522.