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Ash4781

Business Rates Revaluation 2017

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They've revalued non-domestic properties in England for the 2017 rating list. Important as it'll impact alot of businesses and Local Government financing. Imagine the noise if the did council tax band lol. They are consulting on a transition scheme to manage the gains, and reductions. That consultation includes a table with the distribution across the UK https://www.gov.uk/government/consultations/business-rates-revaluation-2017 . 

Soaring property values in parts of London and the South East over the past few years mean that business rates there will be much higher. In areas where property prices have fallen, bills will be lower.


The way the changes will be introduced - with a cap on how much bills can rise or fall over the next few years - will help cushion the transition; so for many companies rates won't change as dramatically as they would have otherwise

http://www.bbc.co.uk/news/business-37483274

The BBC article does touch on the transition scheme which maybe argues does inflict a subsidy on regions outside of London and the South East. 

Website to check rating https://www.gov.uk/government/news/business-ratepayers-click-find-and-review-your-draft-rateable-value

 

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Saw the BBC report yesterday, they had a live report from a humble hardware  store run by an Asian chap in outer London (presumably) going online to discover his fate His business rates were reassessed to £47,000 pa. from £30,000 pa it looked like the sort of store in Hull or Blackburn you would probably get a zero business rate exemption from...it only looked about 20 feet wide.

 

Now how you cover £47,000 selling paint and filler god only knows.

Edited by crashmonitor

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55 minutes ago, crashmonitor said:

Saw the BBC report yesterday, they had a live report from a humble hardware  store run by an Asian chap in outer London (presumably) going online to discover his fate His business rates were reassessed to £47,000 pa. from £30,000 pa it looked like the sort of store in Hull or Blackburn you would probably get a zero business rate exemption from...it only looked about 20 feet wide.

 

Now how you cover £47,000 selling paint and filler god only knows.

It's an awful lot of paint to sell!

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They should do houses but not change the banding at all. Would open the eyes of some people when their 2 bed terraced house gets put in to band E... maybe they'd appreciate the madness.

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I read that Victoria Secrets flagship store in London will have to pay business rates of 2.5 million! That's a lot of grundies to sell!

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It is a big redistribution of tax payment across England - inner and central London and the south east paying more and almost every where else less.

Of course it's all linked to relative rental levels - so if your rates bill has gone up blame rentier landlords.

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1 hour ago, crashmonitor said:

Saw the BBC report yesterday, they had a live report from a humble hardware  store run by an Asian chap in outer London (presumably) going online to discover his fate His business rates were reassessed to £47,000 pa. from £30,000 pa it looked like the sort of store in Hull or Blackburn you would probably get a zero business rate exemption from...it only looked about 20 feet wide.

 

Now how you cover £47,000 selling paint and filler god only knows.

That's the rateable value. The business rates is only half that and his rise gets phased in over five years.

He will probably have to pay about £16k in rates rising perhaps to £25k by 2022. Still a lot but not £47k a year.

This confuses people and causes the hysteria - it's really big businesses in London with valuations over £100k that will see large rises quickly

It will be bad for him - but it will get phased in. The issue is more why his assessed rent is £50k for a small shop.

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6 hours ago, interestrateripoff said:

It's an awful lot of paint to sell!

It wouldn't be £47,000 probably under half that once the small business rate relief and other assistance measures have been pushed through....

Well outside London and My business rates have also increased to just over £9k up from £6.5k. Currently pay around £75 Month next yeas my bill will be zero as it is valued under £10k.

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Here's the consultation for the transitional scheme https://www.gov.uk/government/consultations/business-rates-revaluation-2017

This relief scheme caps the gains / reductions until the bill transitions.

Option 2 is the proposed - and for large properties over a £100K rating a cap of 45% excluding inflation is proposed. Pretty high increases on the large but it is to pay for those on reductions. I can't imagine London businesses being too happy about this but hey it's driven by property value (edit - rents)! We're rich!  What is it now £5/ a pint in the pubs up there?

Edited by Ash4781

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On 01/10/2016 at 1:35 PM, MARTINX9 said:

That's the rateable value. The business rates is only half that and his rise gets phased in over five years.

He will probably have to pay about £16k in rates rising perhaps to £25k by 2022. Still a lot but not £47k a year.

This confuses people and causes the hysteria - it's really big businesses in London with valuations over £100k that will see large rises quickly

It will be bad for him - but it will get phased in. The issue is more why his assessed rent is £50k for a small shop.

Like I said...Stealth tax...so this is not welcome...no matter how they do it.

 

The parasite is eating the host.

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6 minutes ago, Dyson Fury said:

Buy-to-let is a business, remember, so it's entirely reasonable that BTL properties should be subject to business rates, like all other businesses.

 

Oh...

Its only a business when it suits them.......

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16 minutes ago, Motor_Blade said:

Its only a business when it suits them.......

Exactly right.

 

Quote

 

BTL landlords simultaneously claim to be "businesses" and "private investors", and want all the tax breaks available to both. If you want the tax breaks available to a business, such as tax relief on loan costs, you can register with HMRC as a sole trader (you will have to pay Class 2 and Class 4 National Insurance contributions as well as income tax on your income, and you will have to register for VAT if your annual turnover exceeds £82,000). Or, you can incorporate as a limited company (you will have to pay corporation tax on company profits, income tax on any salary drawn, and dividend tax on any income drawn as dividends). Go ahead. Taxation law is very clear. Individuals and companies are treated quite differently, and you cannot claim to be both at once.

 

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http://www.cityam.com/252712/london-boroughs-prepare-95bn-business-rates-hike

Quote

 

Business rates across all the boroughs of London will rise by £9.53bn over the next five years, according to new analysis.

The government has re-evaluated the business rates payable for the first time in seven years, and the new tax rate will come into effect in April next year.

Research by business rates specialists CVS for City A.M. has found that over the next five years, the 33 London boroughs will be paying £1.907bn extra per year in tax as a result of the re-evaluation.

 

Yep London's going to pay more. It's going to get more expensive -£10 a pint?

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They have been chucking up loads of new build flats (sorry apartments) nearby.  They all have retail units underneath. All are empty. Talking to a small business bod today who has an electrical shop, the type that sells cables and switches to sparkies. The local authority has built a mini holland round the street where his shop is.  So, no one can drive to orbpark near his shop. He has no custom at all. Killed it dead. So, he enquirer about one of these empty new build shops. Both rent and rates prohibitive. To cap it, there is no parking for these units so goods cannot be delivered and sparkies cannot park nearby to collect goods.  It's almost as if tptb are setting the system so that out of town large retail units thrive whilst local, independent outlets are killed stone dead 

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Council tax banding was fixed on valuations of property in 1993......so a property in band D could now be worth over £500k in London and half that in another part of the country......not only that but very often banding prices are far lower in London than many other places, water rates are also less.....so taxes and certain utilities living in London work out to be less or cheaper for property of far greater value.....just saying. ;)

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14 minutes ago, One-percent said:

Good to know that two things are cheaper in London. 

Apart from buying property or renting over the last 20 years.....almost everything is possible to buy for less in London, cheaper because competition is better in London, always be someone who will provide a product or service for less. ;)

Edited by winkie

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2 minutes ago, winkie said:

Apart from buying property over the last 20 years.....almost everything is cheaper to buy in London, cheaper because competition is better in London, always be someone who will provide a product or service for less. ;)

Don't agree Winkie. Moved to the smoke 30 years ago from a rural area and what you say held then.  Now, I find that when I visit back home, food in particular is cheaper, and far better quality.  Other stuff can now be bought online so no matter where one resides, the price is the same. 

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2 minutes ago, One-percent said:

Don't agree Winkie. Moved to the smoke 30 years ago from a rural area and what you say held then.  Now, I find that when I visit back home, food in particular is cheaper, and far better quality.  Other stuff can now be bought online so no matter where one resides, the price is the same. 

Slightly off topic, but I know if you shop in the right places food can be cheaper in London places generally  where not possible to buy online.....ethnic stores and small traders, certain markets etc.... transport and certain places to eat out, labour can also be cheaper. Not saying that food, services or labour is not cheaper in other places but London does not need or have to be expensive if you shop around and know where to go....but it can also be very expensive if you want it to be, far more choices, greater differentials..... ;)

 

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1 minute ago, winkie said:

Slightly off topic, but I know if you shop in the right places food can be cheaper in London places generally  where not possible to buy online.....ethnic stores and small traders, certain markets etc.... transport and certain places to eat out, labour can also be cheaper. Not saying that food, services or labour is not cheaper in other places but London does not need or have to be expensive if you shop around and know where to go....but it can also be very expensive if you want it to be, far more choices, greater differentials..... ;)

 

Maybe, but I was thinking like for like.  In particular food.  In a rural area, meat can be bought from the local butcher. It has on a board in the back where it has been raised and slaughtered. It is a decent price. Contrasted to London, unless in a posh, artesian area, butchers are long gone (unless you are happy with well dodgy outlets). So, it is supermarkets or Waitrose or m&s. Shrink wrapped with no indication of raising and slaughtering (thought that this was a legislative requirement)   It is way more expensive. So much so that I buy meat and certain fruit back home in bulk, bring back to London and freeze. 

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But like anything if you know your good suppliers you stick with them.....there are good and bad suppliers, suppliers of value and suppliers of poor value everywhere, you just need to know who they are and where to go. ;)

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