New Rating Bill – changing business rates

Parliament is soon going to enact new primary legislation on business rates, which will have an impact on your pocket as well as your time.  

After years of promising change to the Business Rates system, and countless consultations, The Non-Domestic Rating Bill is at the final stage of its passage through both Houses of Parliament. There are a number of changes that will affect your business, and below is a summary of the key elements of the proposed legislation:

Duty to declare:

NEW – the ratepayer will have to make an annual declaration to VOA on all details about their property(ies) or face fines for non-compliance or falsehoods. Ratepayers will also have to notify HMRC within 60 days when they become a new ratepayer (whether their property is in the Rating List or not).

Three-year Rating Lists

NEW – shortening of the Rating Lists to keep Rateable Values (RV) closer to actual rental levels.

Three new reliefs

• Green energy & decarbonisation – 100% relief of certain P&M including: rooftop solar panels, battery storage used with renewables & electric charging points
• Low carbon heat networks – new 100% relief
• Improvement relief – the value added to the property is discounted from the RV – one year only – restrictions apply

Changes to Material Change in Circumstance (‘MCC’) rules

Any government guidance or legislation cannot now be treated as a MCC (e.g.: mandated lockdowns cannot be grounds for reducing your rates).

Change to Completion notices and definition of a ‘new building’

This could have a major impact on buildings under redevelopment being forced into the Rating List

In all of the above, businesses will have to adapt and change their processes to comply with the new measures. Businesses with multiple properties will find some of the above incredibly time consuming to ensure compliance and not risk (potentially) significant fines.

Read our short guide “The Pro’s & Cons of the New Business Rate Bill”, for more information.

Get in touch

We are always on hand to assist with any Business Rates enquiries, so if you do have a question about how this legislation may impact your Business Rates, then please contact member of the Allsop rating team.