Publications - Blake Penfold

Published business rates commentaries from Blake Penfold

Business Rates Appeals response to draft regulations

In our News pages we have reported on the proposed new business rates appeals system. Department for Communities and Local Government has now issued the draft regulations for the new appeals system and a consultation regarding the regulations. As we reported in our news pages the proposed new system is heavily weighted against ratepayers and contains a proposal to restrict the powers of the Valuation Tribunal to order reduced assessments, even in cases where the Tribunal may consider the assessment to be excessive. The consultation sought responses by October 2016. We have responded to the questions in the consultation and to voice our concerns about other aspects of the draft regulations, including the restrictions on the powers of the independent Valuation Tribunal. You can download a copy of our response here.

Business Rates Revaluations Consultation response

In our News pages we have reported on the discussion document issued by HM Treasury in respect of business rates revaluations. The document, called “Business Rates: Delivering more frequent revaluations” was published at the time of the Budget in March 2016 and set out questions regarding means of carrying out more frequent revaluations either under the current system, or by a self-assessment process or, alternatively, by a formula basis of assessment. The consultation sought responses by July 2016. As we reported in our news page the aim of more frequent revaluations is a good one, but the discussion paper seems very negatively worded. We have responded to the questions in the discussion document and you can download a copy of our response here.

Budget 2016 – Business Rates Announcements

There was a great deal of press commentary in advance of the 2016 Budget about potential changes to the business rates system. This was because the Government’s “structural review” of the business rates system was due to report back for Budget 2016. The review was described as designed to make the business rates system “fit for the twenty-first century”. In the event the Budget announcements about changes to business rates were mainly limited to extending small business rate relief, and more radical change was deferred or shelved altogether. This piece, which was published in the Estates Gazette in March 2016, gives a detailed analysis of the changes that were announced and some commentary about their impact. You can download a copy here.

Changes to Business Rates Appeals

The Government proposes to make major changes to the business rates appeals system. There is general agreement that the present system does not work well, but also real concern that the Government’s proposals are designed to discourage appeals, rather than to improve fairness for ratepayers. This piece, which was published in the Estates Gazette in January 2016, gives a detailed analysis of the proposed changes and considers other changes that might offer real improvements to the business rates appeals system. You can download a copy here.

Business Rates Appeals Consultation response

In our News pages we have reported on the consultation paper issued by Department for Communities and Local Government in respect of business rates appeals. The consultation, called “Check, Challenge , Appeal – Reforming business rates appeals” was published in October 2015 and set out the Government’s proposals for a new system of business rates appeals to accompany the 2017 rating revaluation. The consultation sought responses by January 2016. As we reported in our news page, we have serious concerns about the proposed changes. We have set out details of our concerns, and some suggested ways of making real improvements to the business rates appeals in our consultation response. You can download a copy of our response here.

Supreme Court ruling on business rates

In our News pages we have reported on the decision of the Supreme Court in the case of Woolway (VO) v Mazars LLP which was concerned with whether two floors of an office building should form one rating assessment (or “hereditament” as units of assessment are known) or two. This is an important decision as it changes the rules, as they were previously understood, for determining whether or not units of property should be assessed together for business rates. This piece, which was published in the Estates Gazette in September 2015, gives a detailed analysis of the Supreme Court’s decision and considers some of the implications of this judgment for ratepayers and for the Valuation Office Agency. You can download a copy here.

Business Rates under the new government

With a new government in place and a new ministerial team at DCLG what are the prospects for business rates under the new administration? There are a number of reviews under way, commenced by the previous coalition government, will these be carried through following the election and what reform options are there? This piece, which was published in the Estates Gazette in June 2015, looks at the new team responsible for this and considers the reviews. Be warned that it also throws some rather cold water on prospects for real reform of the business rates system. You can download a copy here.

Newbigin (VO) v SJ & J Monk (a firm) – Court of Appeal decision

We reported the Court of Appeal decision in this case in our news pages. The decision relates to a property undergoing works and sets out how the assumed “reasonable state of repair” that applies to valuations for business rates should be applied in such circumstances. This is an important decision as it is the first time that the assumption of a reasonable state of repair, introduced by the Rating Act 1999, has been tested at this level in the courts. Some of the consequences of this decision will be unwelcome ones to property owners and occupiers. This piece, which was published in the Estates Gazette in June 2015, offers an in-depth analysis of the decision, some of the difficulties that will come from applying it, and some possible solutions to the problems. You can download a copy here.

HM Treasury Business Rates Review

We reported in a recent news page about a Discussion Paper published by HM Treasury as part of its business rates review. The discussion paper was published before the general election but the new government intends to continue with this review. The terms of reference of the review very much limit what it can really achieve because it is required to be “fiscally neutral” – that is to say to raise the same amount of tax after the review as before. Nevertheless, this is an important review and you can download a copy of our response here.

Changes to Rating Appeals

Our news pages give details of changes to rating appeals regulations. Appeals made on or after 1 April 2015 will not have backdated effect in the same way as appeals made before that date. This article looks at how this change will work in practice. The piece also considers the actions needed by ratepayers and their advisors between now and 2016 in the light of the changes.

Business Rates Avoidance

We set out details in a recent news page of a paper published by Department for Communities and Local Government asking for views on what it termed “Business Rates Avoidance”. We said at the time that we felt that the paper trod an uncomfortable line between recognising that tax avoidance, as opposed to evasion, is a perfectly legal approach and a desire to represent avoidance as in some way reprehensible. The paper sought views on avoidance and we have responded to its questions, to try to point out some of the inconsistencies in DCLG’s approach. You can download a copy of our response here.

Business Rates Administration Review Interim Findings

In our news pages we reported that the Government had published its interim findings from the Business Rates Administration Review and a series of further questions to stakeholders about the review. The questions were largely a restatement, in slightly different form, of the questions posed in the original discussion document. We have, nevertheless, responded to these questions and you can download a copy of our response here.

Rating Revaluation 2017

The Government has announced that the valuation date for the 2017 rating revaluation will be 1 April 2015. This article looks at the implications of the announcement for ratepayers. There will be a great deal of uncertainty about business rates liabilities from 2017 onwards, and other administrative burdens in the run up to the revaluation. The piece also considers the implications for those faced with rent reviews or lease renewals in 2015.

Empty rate liabilities in the Courts

A review from the Estates Gazette looking at recent Court and Tribunal decisions regarding rate liabilities for empty properties. This piece appeared in the Estates Gazette and explains two recent cases where the courts have refused empty rate exemptions for properties where the lease has been disclaimed and others which were in a poor state of repair. There is some hope for owners however as two recent tribunal decisions have determined only nominal assessments for properties undergoing, or requiring, major works. Estates Gazette September 2014.

Business Rates Administration Review

A detailed analysis of the Business Rates Administration Review announced by HM Treasury and the Department for Communities and Local Government. This piece appeared in the Estates Gazette in June and looks at the scope of the review and the possible outcomes. It also examines reforms that ratepayers should be looking to suggest, both within and outside the scope of the review. Estates Gazette June 2014.

Checking and Challenging Your Rateable Value

This article examines the DCLG consultation on changes to the business rates appeals process. It looks at the proposed changes set out in the consultation with a critical eye. In particular, the proposed changes seem unlikely to answer ratepayers’ criticisms about lack of transparency in the appeals system and are likely to add another layer of complexity to a system that is in desperate need of simplification. Estates Gazette March 2014.

Big Cupboard of Trouble

There are more than 120,000 unresolved appeals against rating assessments. Is the Tribunal system in danger of being overwhelmed by the sheer number of appeals? How can ratepayers force the Valuation Office Agency to negotiate? A careful analysis of an appeal system creaking under the strain. Estates Gazette November 2013.

United against a disproportionate tax

Senior executives of major UK businesses are united in their calls for a review of business rates, calling the tax “not fit for purpose” and “outdated”. This article examines realistic prospects for reform of the system, given the state of public finances and the Government’s reliance on business rates as its one “recession-proof” tax. Estates Gazette September 2013.

Court decisions on empty rates liabilities

A review of decisions from the Courts in respect of empty rates liabilities; this looks at decisions from Makro Cash and Carry through to Sterling Investments and assess what these decisions mean for different schemes designed to mitigate empty rates liabilities. Which schemes will work and which will land ratepayers in difficulty? Estates Gazette June 2013.

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