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The UK Government has now published indicative multipliers for the 2017/18 rate year for England.

The Welsh Government has set its indicative multiplier at 49.9 p.

INTERACTION WITH SMALL BUSINESS RATE RELIEF CHANGES (England)

 As of 1st April 2017, changes will be introduced to Small Business Rate Relief, which reduces the liability for some smaller properties. The 2017 increases to the thresholds for Small Business Rate Relief are:

A business may only claim Small Business Rate Relief on one property, expect where they have additional properties all of which have a rateable value of under £2,600 and the total rateable value of all their properties does not exceed £17,999.  Local Authorities will be compensated by Government grant for the revenue lost as a result of these changes.

TRANSITIONAL ARRANGEMENTS

Large changes in rateable values at revaluation can translate into large or very large sudden increases, or decreases, in business rate bills. To protect businesses from sharp effects of this kind, transitional arrangements can be used to dampen the effect of a revaluation on business rate bills.

The Government will introduce the following transitional relief scheme for the 2017 revaluation:

 

Transitional Arrangements 2017 Revaluation (before inflation) funded by 3 caps on reductions

 

Property Size 2017/18 2018/19 2019/20 2020/21 2021/22
 

Upwards cap

 

Small

Medium

Large

 

 

5.0%

12.5%

42.0%

 

7.5%

17.5%

32.0%

 

10.0%

20.0%

49.0%

 

15.0%

25.0%

16.0%

 

15.0%

25.0%

6.0%

 

Downwards

cap

 

Small

Medium

Large

 

20.0%

10.0%

4.1%

 

30.0%

15.0%

4.6%

 

35.0%

20.0%

5.9%

 

55.0%

25.0%

5.8%

 

55.0%

25.0%

4.8%

 

Note:     These are year on year caps on increases. For instance, the maximum increase for small properties over 5 years would be 64%. But a small property with an increase of 7% would reach their full bill in year 2. Medium is above £28,000 rateable value in London and £20,000 elsewhere. Large above £100,000.

Some of this will make billing quite complicated for ratepayers, any questions, please contact me.

 

–  ENDS  –

 

Contact for further information:
Howard Elliott
Baker Davidson Thomas
E-mail:  howard.elliott@bdt.uk.com
Telephone:  01256 840 777

6th February 2017

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