Business Rates Revaluation in 2023
Rates liabilities continue to be based on April 2015 values for a further two years.
The government has announced that the next revaluation of commercial property in England will take effect on 1 April 2023 and will be based on rental levels prevailing at 1 April 2021, in order to “better reflect the impact of COVID-19”.
We expect the Welsh Assembly to follow England. The Scottish government is yet to comment and as things stand, the Assessor is preparing the 2022 rating list that will be based on April 2020 rental values, although this could change.
Today’s statement was contained in a policy decision that was announced by the Financial Secretary to the Treasury regarding planned changes to many areas of taxation, notably the administration of taxation. The statement reiterates the government’s plans to ‘digitise’ the tax system in order to deliver a modern tax service. More detail is expected in the autumn.
In May, we reported the Government’s announcement that its plans for a revaluation in 2021 (with an April 2019 valuation date) were cancelled. The current 2017 rating list that is based on April 2015 values, will be current for a total of six years. All sectors of property require an urgent rebasing of values. Whilst retail, leisure and hospitality occupiers are receiving 100% Retail Rate Relief this year, it is not known what relief, if any, the government will grant from April 2021.