Agents say Business Rate changes for branches are ‘...

Letting agencies with physical offices are being presented with a new business rates system in the future.

But Propertymark says the changes don’t go far enough.

A new Non-Domestic Rating Bill being introduced in Parliament will “modernise” the business rates system for England in a bid to incentivise improvements to properties and encourage more turnover.

Instead of the current five years, frequent valuations will occur every three years, meaning those with falling values should see bills drop sooner.

Businesses making specific qualifying building improvements will not face higher business rates bills for 12 months, which will make it easier for investment as the new reliefs for property improvements provide tax breaks for those extending or upgrading a property.

The Bill now in Parliament follows a consultation which ran from July 2020 to October 2021.

Currently, ratepayers are not obliged to notify the Valuation Office Agency of changes to buildings but are required to respond to requests for information.

Under the new system, ratepayers will, as is the case for other taxes, be expected to find out what their obligations are and proactively comply, using an online service.

Ratepayers will need to notify the VOA within 60 days of changes to occupier and property characteristics that are relevant for valuations.

Propertymark chief executive Nathan Emerson says: “We are pleased to see that reforms are being made to the business rates system as more revaluations will ensure that rates are kept fair and accurate.

“However, a more frequent, annual revaluation such as that being used in the Netherlands in their national and collaborative model, where ratepayers and taxpayers are seen as part of the process would even further reduce administration and generate a Government saving of an estimated £56 million a year.

“As part of Propertymark’s wider lobbying and stakeholder work, we have been encouraging member agents to submit their data to the Valuation Office Agency. Therefore, it is also positive to see that, as part of a wider package of measures to support more frequent revaluations, ratepayers will be obliged to proactively notify the VOA of changes to occupier and property characteristics to make valuations even more accurate.”