A general rating revaluation took effect on 1 April 2010 when all commercial and other non-domestic properties received new rates assessments – leading to significant changes in rates liabilities for many properties. The 2010 assessments show that average rateable values in England increased by around 19% in comparison with the 2005 revaluation and those in Wales increased by 20%.
This should have led to proportionate reductions in the Uniform Business Rates, but they have reduced by only 15%. This is because in setting the 2010/11 UBRs, the Government and the Welsh Assembly have factored an assumed ‘loss on appeals’ – in other words they are expecting successful challenges against the new valuations. Gerald Eve’s rating team has saved clients in excess of £2.3 billion following appeals against the last two revaluations, so please contact us to ensure that you benefit from the ‘losses’ the Government expects to concede at the 2010 revaluation.
Many properties and sectors have seen above average assessment increases in 2010 leading to big increases in bills.
For example, many office occupiers in London’s West End saw their assessments double. Increases of up to 75% are evident on some oil and gas properties and power station assessments have doubled. On the other hand, the UK’s manufacturing base has continued to contract, impacting on rental growth, with values being further affected by the abolition of empty rates relief. Overall, the industrial sector has benefitted from the 2010 revaluation.
The impact on the retail sector has been far less pronounced than at previous revaluations, but averages can be misleading and each assessment will need seperate analysis to create a strategy for savings.
Please also see our November 2009 Debrief, in which we explain how the transitional relief arrangements in England cushion the impact of the revaluation for those facing increased bills, whilst imposing a surcharge on businesses whose bills decrease as a result of the 2010 revaluation.
The revaluation position for businesses in Scotland and Wales is also explained in our November 2009 Debrief, since when both devolved governments have confirmed that there are no transitional relief schemes applicable in Scotland and Wales.
Please contact us if you would like to discuss the 2010 revaluation impact on your businesses and how Gerald Eve’s rating specialists can create rates savings for you.
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