Business rates increases

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Nemo
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Post by Nemo »

Annew wrote:I understood (maybe mistakenly) that things are changing from April 2017, but can't really find any firm info about this apart from in the BBC website article Nemo found about the last Chancellor's budget.

I've just set my accountant the task of finding out more - so will keep you posted.
Try here: http://researchbriefings.parliament.uk/ ... ry/SN06247

There's a link at the bottom that downloads a pdf entitled briefing paper 5 April 2016 Business Rates. Needless to say I haven't bothered to read it all, but a general search also brings up more articles that may help shed some light on the matter.
Annew
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Post by Annew »

Thanks Nemo - on a quick scan, the briefing paper answers all the questions that have been raised.

Fortunately, as my properties are on my farm (ie same location/postcode) they have always been treated as one holiday business (mainly because of planning conditions and restrictions that I persuaded the VO were an issue when I appealed a few years ago) Therefore my rateable value (which I think is calculated on bed space rather than SQm) applies to my whole business rather than each cottage. It seems to be the same for other businesses like mine in the local area.

I'm therefore hoping for 100% relief from April rather than the 70% I have been getting.
If you want to find me, Google The Barton Poughill!
ClareW
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Post by ClareW »

Being in the process of changing over from council tax to business rates I have just had loads through the post from the valuation office and it would seem that the rates are going up from the current £325/ m2/ unit to £950/ m2/ unit in April 2017. So from £1050 currently to £3100 in 2017!! Can this be right? I told by the valuation officer on the phone that I should get 100% small business rate relief which is hopefully the case, but even so I dont understand how it can go up nearly 3 fold... Also, when I was sorting it out on the phone, the valuation officer was very keen to change the property to 3 bed spaces from 4 (which it was in the past when a holiday previously). I have a small single trundle guest bed in the 2nd bedroom, and she said as a bunk bed is classed as a single space she would change it to a single space, if I could call it a single room not a double (it will fit the 2 small singles or kingsize that the guest bed makes and be advertised to sleep 4). I now have a horrible big fat VO 6048 to fill in where I have to specify number of bedrooms ab bed spaces and hether rooms are single or double, so hopefully this will be ok!
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Nemo
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Post by Nemo »

That sounds like a hell of a hike. I'd be questioning that in your shoes.
ianh100
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Post by ianh100 »

Same for me but my second property will change form £2200 to £2700 which means l lose the SBRR :evil:
ClareW
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Post by ClareW »

That sounds like a hell of a hike. I'd be questioning that in your shoes.
Have just rung the valuation office who explained by saying that the properties in this area haven't been revalued since 2008, so this is what they think it is worth bearing in mind current rental prices in this area. She said to wait until it goes live in April then I can challenge it if I like, but that it has been worked out using current rental prices. Still, 300% is a hell of a hike. Hopefully I should get 100% small business rate relief to cover it.
Annew
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Post by Annew »

ClareW wrote:
That sounds like a hell of a hike. I'd be questioning that in your shoes.
Have just rung the valuation office who explained by saying that the properties in this area haven't been revalued since 2008, so this is what they think it is worth bearing in mind current rental prices in this area. She said to wait until it goes live in April then I can challenge it if I like, but that it has been worked out using current rental prices. Still, 300% is a hell of a hike. Hopefully I should get 100% small business rate relief to cover it.
If you read back in this thread, the briefing document Nemo refers to explains about the abolition of business rate payments to small businesses with a rateable value of £12,000 or less.

(PS - my bunk room is classed as a single as there is not enough floor space for 2 beds and space to walk between them - RV on holiday properties in my area is calculated per bed space, so less is better!)
If you want to find me, Google The Barton Poughill!
Bunny
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Post by Bunny »

I've spoken to a valuation officer today and got my bed spaces amended. For anyone who is pondering this, he told me the bed 'spaces' is literally your maximum occupancy. However, they do not count a cot as a bed space.
ClareW
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Post by ClareW »

That's interesting as my valuation officer said I could be valued at 3 bed spaces but advertise as sleeps 4! I guess a bunk bed is officially 1 bed space but sleeps 2, so she applies the same logic to a trundle guest bed...
Bunny
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Post by Bunny »

ClareW wrote:That's interesting as my valuation officer said I could be valued at 3 bed spaces but advertise as sleeps 4! I guess a bunk bed is officially 1 bed space but sleeps 2, so she applies the same logic to a trundle guest bed...
Yes, very interesting because I queried if a double bed counted as 1 bed space or 2. He said two and that it is how many people the property can sleep. So, I would have thought that bunks count as two too. Typical woolly government rules applied differently by different officers according to their interpretation.
waterwitch
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Post by waterwitch »

Just looked up our 2017 revaluation - one has a RV of £4,200 based on 6 bed spaces @ £700 and the other cottage an RV of £3,000 based on 3 bed spaces @ £1000.

That's nearly double the previous valuation although the threshold for small business rate relief has increased to £6,000.

I'm not sure how the same authority can have different base rates but can only assume the more you have the lower the single bed space charge.
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