Rating appeals specialist, Kilpatrick & Co have joined with other rating experts in condemning the Government’s latest proposals for amending business rates appeal regulations. The latest draft regulations have just been put out to consultation and propose that when an appeal goes to Valuation Tribunal, the Tribunal should only make a reduction in assessment when the valuation is “outside the bounds of reasonable professional judgement”.
Whilst no defintion is provided in the regulations, in valuation cases, courts have typically considered a margin of error of 10-15% to be not unreasonable. Hence, if the proposals are implemented as drafted, the Valuation Tribunal may be precluded from making any rateable value reductions unless over around 15% over-assessed. This may also preclude most temporary rates reductions, such as changes affecting a property’s locality, such as roadworks, local disturbance, etc., where reductions given are typically 10 to 15%.
The new regulations also detail the new rules for the new 3 stage, check, challenge and appeal process and proposed fines for supplying incorrect information and fees for making appeals.
Andrew Kilpatrick of Kilpatrick & Co said “Ratepayers should work with their trade associations and other professionals to object to these proposals, which seem to be designed to discourage appeals, rather than give ratepayers a right to a fair rates assessment.”
The Government’s consultation is open until 11 October 2016. Details can be found at www.gov.uk/government/consultations/reforming-business-rates-appeals-draft-regulations
