Reading: Property tax ‘storm' to hit ratepayers in April
The financial impact of the 2017 rating revaluation will be felt by many businesses located in Reading when the new rate bills land next March, warns Vail Williams.
Stephen Hill, partner and member of the Vail Williams business rates team in the Thames Valley, said: "'Larger' occupiers (properties with 2017 List assessments over RV£100,000) will see an immediate surge in their rate liabilities, potentially more than 45% higher than the amounts payable in the current 2016/17 rate year.
"This is due to a change in valuation date on which the new 2017 list assessments are based (an AVD of April 1 2015 from that of April 1 2008 for 2010 revaluation period), which has resulted in significant increases on many commercial properties in the town, allied with the Government's current 'Consultation paper for Transitional Arrangements' – the system for phasing in increases and decreases in rate liability as a result of the 2017 revaluation.
"This imperfect 'property tax' storm will impact financially on the operating costs for many organisations across the Thames Valley, with the way ahead also clouded by the imposition of a complex ‘check, challenge, appeal' regime that is replacing the existing appeals process.
"While an increase (or decrease) in the 2017 list 'Rateable Values' doesn't automatically mean these new assessments applied by the Valuation Officer are incorrect, the rental evidence we've analysed so far indicates that the new levels should be scrutinised and reviewed well in advance of April.
"The draft 2017 rating list was published on September 30, 2016, and the new assessments can be viewed online via the gov.uk website. In our professional opinion as a Thames Valley-based property consultancy, it has never been more important to prepare your rates mitigation game-plan ahead of a revaluation of the rating system."
