ACS

In its announcement on business rates on Tuesday, the Government has made the decision to implement a 5 year transitional relief scheme. The scheme will see businesses that have seen significant variation in their rates phased in and capped over the five year period.

The announcement comes as several forecourt retailers expressed concerns at the recent ACS led Rates Forum that their business rates had increased by up to 400%. Under the proposals, businesses that have had increases in excess of 100% will not pay rates on more than 100% of their rateable value by the end of the 5 year period. However, businesses that have had rate reductions in excess of 44.3% will not receive full benefit from this decrease during the 5 year evaluation period.

ACS Chief Executive James Lowman said: “The transitional relief scheme provides some reassurance for businesses that have seen massive rate increases, but we are highly concerned that businesses could suffer in the 2015 re-valuation. If the anomalies in rateable value, especially in the forecourt sector, are not addressed then those with new rateable values well in excess of 100% could be faced with the remainder of their increase in one hit.”

Many retailers that have seen large increases will be planning to make an appeal against their rates. To understand how to take forward a rate appeal, visit the VOA website at www.voa.gov.uk  or talk to a local agent.

For a more detailed explanation of the transitional rate relief scheme, click here: http://www.communities.gov.uk/publications/localgovernment/bril142009  

If you have any other concerns about business rates, please contact ACS on 01252 515001 or email chris.noice@acs.org.uk.