28 properties a day across the Capital are appealing their business rates since the controversial revaluation came into force on 1 April 2017 new data has revealed.
New rateable values, which are an estimate of a property’s annual rent on 1 April 2015, came into effect on 1 April 2017, and form the basis of the calculation of business rates bills until 2021.
Data released by The Valuation Office Agency, an Executive Agency of HM Revenue & Customs, reveals that 18,240 non domestic properties within the 32 boroughs of London and the City from shops to restaurants to offices to public sector buildings have registered a ‘Check’ between 1 April 2017 and 31 December 2018, the first stage of a formal appeal under the Check Challenge Appeal Regulations.
80% of London appeals were resolved with 14,580 being cleared during the 21 month period.
Across England, a total of 65,380 Checks were registered, with more than one in four coming directly from London. 3,450 came from Westminster with 2,170 from the City of London and 1,390 from Camden.
Alex Probyn, president of UK expert services at real estate adviser Altus Group, who’s firm lodged around one in six of all appeals nationally said, “Despite some valid criticisms of the new appeal regulations, the system works if you get stuck in and we continue to engage with the VOA on ways to help improve it. We increased our volume by 90% in the third quarter of 2018 and the VOA are now clearing more Checks than they receive which has to be some positive news for business.”
The Ministry of Housing Communities and Local Government have confirmed that they expect Councils in England to collect £25bn in business rates in April for 2019/20 up £206m with the standard tax rate exceeding 50% for the first time in April.