The first revaluation of business rates for seven years, which comes into effect on April 1st, will see many businesses in South Wales having a substantial reduction in their business rates, says Mallard director and chartered surveyor Jason Williams.
Revaluations normally take place every five years, but there was a two-year delay in this instigated by UK Government.
The rateable value for a property is (subject to certain criteria) the amount for which the property should be let as at a given date. The given date for the 2017 list is 1st April 2015 calculated by the Valuation Office Agency.
The rates payable are based on how many pence are in the pound (multiplier), which will be 0.499 with effect from 1st April.
“Many businesses have had a substantial reduction in their business rates,” said Williams. “However, these tend to be in more depressed areas where the demand for property has fallen. An example of this would be the Swansea city centre where there are now several empty units and as a result rents have fallen,” he said.
“Consequently, the Rateable Value has also dropped considerably. However, this has been partly offset by an increase in the Multiplier.”
“Some businesses (i.e. in more affluent areas where there is a high demand for properties to rent) have seen a substantial increase in their Rateable Values.
Apart from certain business sectors (for example, those in the leisure industry) the success of a business has nothing to do with the amount of business rates payable.
Fellow Mallard director and chartered surveyor Rhodri Poiner added: “Some less scrupulous rating companies promise a reduction in the Rateable Value for an up-front fee.
“Mallard Chartered Surveyors believes that this is unethical and offer free business rates reviews, and we will only charge a percentage of the saving over the length of the Rating List (usually five years).”
For more information please contact Jason Williams or Rhodri Poiner of Mallard Chartered Surveyors on 01792 361300.