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Mixed news for business rate revaluations

Dealers have seen regional variations across the UK following the business rates 2010 revaluation.

Property consultant GVA has witnessed some large rates increases in the West Midlands, south-west and south Wales, with the north of England remaining relatively static and the south-east having a mixed outcome.

Tom Rigg, GVA automotive and roadside senior surveyor, said: “The rest of the country has done relatively well. Some motor trade properties (in the East Midlands, for example) have had reduced valuations.

“This has partly been as a result of adopting a uniform ‘gross internal area’ method of measurement.

“Previously, there were measuring variances across English regions and this in some way accounts for the changes.”

Rigg urged dealers that wish to lodge rating appeals to do so in the first half of this year as the valuation office is likely to start looking at car showroom appeals in the second half of 2011.

The current business rate multiplier is 41.4p in the pound and GVA’s projections for the uniform business rate for 2011/2012 is 43.3p in the pound (representing a 4.6% increase).

Some dealers who had large increases in rateable value on April 1, 2010, will witness a greater increase in their rating liability for 2011/12 than simply the increase in the uniform business rate, as the Government’s transitional relief provisions phase in increases in payments following the 2010 revaluation.

Rigg said millions of pounds go unclaimed on a yearly basis due to missing out on claiming for tax rebates on qualifying assets that could improve profitability in relation to property expenditure.

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