With effect from 1 April 2023, the occupier of every non-domestic property in England and Wales will have received information regarding its future Rateable Values (RVs) and any change to the payments due.
In addition to this, another significant change is coming.
The proposed ‘Non-Domestic Rating Bill’ has commenced its parliamentary journey and is expected to receive Royal Assent, after being approved by each House of Parliament, by April 2026. It will be a major departure from earlier business rates procedures as the proposed protocols include several significant developments which every ratepayer must know and understand as it will impact business rates liabilities across the board, as well as rate payers’ legal obligations. Non-compliance could result in a fine.
A new ‘Duty to Notify’ provision will be phased in from 2023, making it mandatory for ratepayers to notify the Valuation Office Agency (VOA) of any changes to their building which might impact its valuation, and therefore their business rates liability. The changes, are expected to be as follows:
- Currently, there is no legal duty on the ratepayer or property owner to inform the VOA of changes made to a property. The new Act will introduce a statutory responsibility on the ratepayer/property owner to do so (with non-compliance likely to result in a fine).
- Lease and property information must be updated within 60 days, following a triggering event such as signing a new lease, tenancy agreement, rent review memorandum or lease renewal.
- The new arrangements will also apply to changes in occupation or property characteristics, such as new occupation, termination of occupation, change of use or following an extension or other alterations to the property.
- An annual confirmation that the property details held by the VOA are correct will also be mandatory and will have to be completed within specified time limits. Fines will be issued for non-compliance, or for the provision of false information.
- It is also possible that the VOA will be given powers to backdate changes to properties revealed by these duties to inform making it so that any occupier will need to consider accrual against the likelihood of increased liabilities.
For advice on how the new legislation will affect you or, if you require any clarification of advice on issues such as the rateable value of your property, or the possibility of reliefs or exemptions feel free to get in touch with our business rates team. Find out more by clicking here.
