Appeals Reveal Extent of Business Rates Blow
The number of Scottish companies appealing their business rates has increased by 22% compared to the last revaluation in 2005 and it is anticipated that this figure could rise to as much as 30% by the appeals end date, 30 September.
This view is based on statistics gathered by Ryden detailing levels of new instructions received from businesses such as Scotmid, National Museums and Highland Spring, as well as numerous reappointments by existing clients.
The number of appeals Ryden is lodging for businesses across the country show that the reduction in the uniform business rate (UBR), which is multiplied by the rateable value of a property, has not, as the Scottish Government suggested, meant that the majority of non-domestic rate payers would generally be better off by paying roughly the same or less than last year.
There are of course a minority of businesses that are paying less, however some, such as hotels and pubs, are paying significantly more. An example is Edinburgh's Prestonfield House Hotel, which has seen its rateable value double to £199,000, meaning around £80,000 more is due in rates each year. Relegated football clubs also suffer badly as they have lost their substantial TV income but their rateable value is based on their income in 2008. Ryden's experience ‘on the ground’ is that the majority of businesses are worse off.
Ryden has taken on a high number of appeals for educational establishments; nurseries in particular have been hit very hard with an average 40-50% jump in rates bills. Care homes have also seen a surge in rateable values but depending on the organisation, some will be granted relief. The almost total removal of transitional relief in Scotland has been widely criticised.
The 2010 rating revaluation has caused controversy because the rateable values have been based on averages over the last five years which takes into account the property boom. In the most extreme cases, some businesses' rates have become crippling after rising over 500%.
The next two weeks present a window of opportunity to businesses that have yet to appeal or haven’t yet considered the rise in their business rates. The appeals end date for Scotland is 30 September and businesses can take advice from rating experts to negotiate the intricacies of the system. If appeals aren’t lodged in time, they will have to wait five years to appeal the decision.
For more information on making an appeal against your rateable value in Scotland contact Tim Bunker on 0131 473 3215 or tim.bunker@ryden.co.uk
The appeals end date in England and Wales is 30 March 2015. For further information on appeals outwith Scotland contact Oliver Turner on 0113 386 8828 or oliver.turner@ryden.co.uk
