Illustration of the effect of the new rating appeal deadline

The new deadline for rate appeals is 31 March 2015, after which time any refunds will only be backdated for the period 2015 – 2017 rather than the current 2010 – 2017. Many commercial ratepayers are facing a potential loss of 5 years’ worth of rate savings unless they lodge an appeal by 31 March 2015. But what might this mean in monetary terms? This simple* illustration proves the value to businesses of taking action before 31st March 2015.

A commercial property with a Rateable Value (RV) of £ 25,000 is reduced on appeal by 10% to £22,500 ie a RV reduction of £2,500.

If the appeal is made before 31st March 2015:

April 2015 to March 2017: RV Reduction £2,500 x 50p (average multiplier) x 2 years = £2,500

Backdating April 2010 to March 2015: RV Reduction £2,500 x 45p (app average multiplier) x 5 years = £5,625

Total gross saving £8,125

If the appeal is made after 1st April 2015:

April 2015 to March 2017: RV Reduction £2,500 x 50p (average multiplier) x 2 years = £2,500

Total gross saving £2,500

*Note that this illustration does not take into account Transitional adjustments which could affect savings in the earlier years.

Robert Sears of RDS Commercial said, “We would encourage every business that hasn’t already checked that they are paying the correct amount in Business Rates to do so before 1 April 2015. This will ensure that if a rate reduction is agreed, they are able to claim a rebate for the full seven years rather than just two.”

To contact Robert Seares call 01993 705594 or email him.