Local authorities post revalued business rate demands on 1 April and, according to one chartered sur...
Local authorities post revalued business rate demands on 1 April and, according to one chartered surveyor, up to 35% of recipients will appeal against the rise with a good chance of success.
Draft figures available now from local authorities show that rateable values on office-based businesses in central London have increased by an average of 91%, and by as much as 34% in the south east. The average increase across the whole of England, excluding inner London, is 15.3%.
Michael Davies, a partner at chartered surveyor Matthews & Son, said: "Many businesses will not know, but they can appeal against it. Many will achieve substantial reductions."
Non-domestic rates bills are calculated by multiplying the rateable value of a property by the national multiplier of 0.416 in England. In Wales the multiplier is 0.412, and in Scotland 0.448 for rateable values under £10,000 and 0.458 for values over £10,000.
The rateable value, which is set by the Department for the Environment, Transport and the Regions, is the annual open market rental value of a property at 1 April 1998. It is this figure that businesses can appeal against.
Davies said that there were no national figures indicating what percentage of appeals succeed, but as revaluations took place every only five years, many businesses stood to make substantial savings.
His tips to increase the likelihood of an appeal succeeding were to co-ordinate with nearby businesses in similar premises, and to include a low estimate of rateable value in the initial appeal form.
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