HM Government has just published the results of its consultation on the reform of the current business rates appeal system. Despite opposition from property professionals, the Government is to proceed with a new appeals process from April 2017, with a three-stage check, challenge and appeal process, with ratepayers (or their agents) having to provide detailed grounds for a challenge to a 2017 assessment, an alternative valuation and evidence to support it. If the VOA does not accept the challenge, the ratepayer can then appeal, but will have to pay a fee of £300 for the priviledge. Ratepayers can also be fined up to £500 where the VOA considers false information is knowingly or recklessly provided during the check or challenge stages. Small businesses are to be given a fast-track through the system, guidance to help them navigate the system without professional support and lower appeal and penalty fees.
The Government is to issue draft regulations for consultation for the new appeals system during the summer, so the new appeal system is ready for the new Rating List in April 2017.
Andrew Kilpatrick of Kilpatrick & Co said “The new system will inevitably pose a significantly greater burden on the ratepayer, particularly as ratepayers will be required to register online with the Valuation Office Agency in order to check the facts relevant to their valuation as held by the VOA are correct. The challenge process also imposes a far greater burden on the ratepayer to disprove the VOA’s assessment than previously. The successful challenge will require ratepayers, or their agent, to provide good quality rental evidence to demonstrate the Valuation Office’s assessment is wrong. The new rateable values are based on rents as at April 2015. We have been collecting rental information on all types of property for some time, so we are ready to help our rates clients with successful challenges.
One bit of good news is that the VOA has agreed to work with ratepayer stakeholders to design and introduce a pre-challenge clearance process to allow groups of ratepayers/agents at the same location, such as a High Street or an industrial estate, to provide the VOA with evidence outside the formal challenge process regarding the valuations in that particular location. Then if the group of ratepayers or agents convince the Valuation Office to review the valuation basis, a faster challenge process may be initiated”.
