GovWire

Business rates revaluation: the facts

Department for Communities and Local Government

February 17
12:23 2017

The next business rates revaluation takes effect from 1 April 2017

The government is regularly required to update the rateable values of business properties in England to make sure that they are paying the right amount of rates.

Alongside this were introducing the biggest ever cut in business rates - a 6.7 billion package over the next 5 years.

This is about making business rates fairer

The revaluation will make the system more accurate by ensuring business rates bills reflect the property market.

Nearly three-quarters of businesses will see no change or a fall in their bills from 1 April 2017 thanks to the business rates revaluation, with 600,000 businesses set to pay no business rates at all.

The government will not benefit financially from the revaluation it is a revenue neutral process.

In addition, from 2019-20 business rates will switch from being linked to the Retail Price Index (RPI) to the Consumer Price Index (CPI), saving businesses around 400 million in total every year.

The government is providing 3.6 billion directly to businesses to help with the revaluation

The transitional relief scheme will support ratepayers by capping and phasing in any rise in bills.

600,000 small business will pay no business rates at all

As part of the 6.7 billion package of business rates cuts over the next 5 years, the government has permanently doubled Small Business Rate Relief.

Eligible properties with a rateable value of 12,000 and below will receive 100% relief.

Eligible properties with a rateable value between 12,000 and 15,000 will also benefit from business rates relief, offering significant reductions on their business rates bills.

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