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Saving For a Space Ship

London Biz Rates Average 11% Increase Due to Soaring Property Prices

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  "London’s businesses aren’t so lucky, though: They face a stiff average increase of 11% thanks to the capital’s soaring property prices. "

 

http://www.ukbusinessforums.co.uk/articles/small-businesses-face-business-rates-crunch.478/

 

Quote

This 11% isn’t spread evenly across the City, either: high-end fashion shops will experience increase up to 415%.

Reflecting on the changes, Brian Palmer, tax policy adviser at the association of accounting technicians (AAT), noted there would be “clear that there will be winners and losers, with parts of London experiencing eye-watering increases”.

“But,” said Palmer, “more depressed areas, for instance, Newport Gwent and Suffolk, will benefit from reductions in their rateable values.” 

Every five years the government adjudges value of properties to determine their “rateable value”. In areas of the country where property prices have fallen, business will receive a welcome decrease. The underlying values are always taken from two years previously. So the 2010 adjustment used property prices from 2008.

This re-evaluation is a strange one, however. It was due to happen in 2015, but in October 2012 the government announced a two-year postponement of the revaluation to 1 April 2017. This delay was done specifically to avoid rising property prices.

But it has backfired.

“The period between 2013 and 2015 saw rental levels increase sharply in some areas, particularly in London and the South East, and are now at record levels,” reads a report on the re-evaluation by the commercial property firm Colliers International.

“Not having re-valued business rates over such a long and economically volatile period has left the landscape of UK business rates at its most complex phase yet. There will be a significant impact across the country with many businesses finally getting some respite from years of overpayment, whilst others face the prospect of seeing a sizeable increase in their rates liability.”

 

Edited by Saving For a Space Ship

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The chart at the bottom of that linked page is good though as it mostly goes down everywhere else. Perhaps London needs a cold shower and ways to make its property cheaper.

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15 hours ago, Arpeggio said:

The chart at the bottom of that linked page is good though as it mostly goes down everywhere else. Perhaps London needs a cold shower and ways to make its property cheaper.

Ok, following your opinion, I should wait for march/april then? I would like to buy in London center.

My first idea was to use political unsecurity now (and the obvisous absence of other buyers) for hefty negociations and an anticipation of a later explosion/impolision of the bubble.

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I thought the Tory's were the party of business. Actually, they're the party of Landowners, Aristocracy and now Multi-National Corporations.

Should be interesting how this plays in Tory marginals...

Edited by Tapori

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