Chris Grose looks at how the latest developments in Business Rates might affect ratepayers...

Before the election business rates was a high profile topic. Although it has subsequently slipped away from the news, there is still a fair amount going on:

• Revaluation 2017 – The 2017 Rating Revaluation takes effect on 1 April 2017 and is based on rental values at 1 April 2015.  The Valuation Officer is targeting valuing 70% of properties by December this year and 100% by May next year to enable the Government to give thoughts to rate poundages and any transition scheme.  The draft list will be made public in September 2016.
• Properties under repair – The Court of Appeal determined in the case Monk v Newbiggin that a property that had been stripped out as the first stage of a refurbishment should be valued as if it was in good repair.  Leave to appeal to the Supreme Court has been granted.  We continue to act for clients in seeking nominal assessments during refurbishment schemes.
• Contiguous floors – Traditionally contiguous floors have been assessed as a single assessment therefore benefitting from size allowances. However, a Supreme Court decision earlier this year has raised issues as to whether contiguous floors should be a one assessment or whether each floor should have its own rateable value. We are currently waiting for information on how this decision will be implemented by the Valuation Office.
• 2016 Rate Poundage – The 2016 rate poundage will notionally be based upon the RPI figure for September.  A slight increase is therefore expected, more when announced.

Landlords and tenants should be aware that current rental values will affect rents payable from April 2017.
When proposing refurbishment schemes landlords should consider the applications on business rates liability and take early advice.

Chris Grose is a divisional director in Capita property and infrastructure’s real estate division.