As many of you will be aware, on 1 April 2017 there was a major Revaluation of commercial business rates.
Rates bills are calculated by applying a Uniform Business Rate (UBR), also known as Poundage Rate, to the Rateable Value (RV) of your property. In terms of the calculation, the standard UBR is increasing from £0.466 to £0.480 in April 2018. There is also a Large Business Supplement (for premises with a RV greater than £51,000) of £0.026 which will remain as it is.
The table below shows the Scottish Poundage Rates for 2017/18 and the new 2018/19 rates:
|
|
Poundage Rate (UBR) |
|
|
Rateable Value |
2017/18 |
2018/19 |
|
Poundage Rate |
£0.466 |
£0.480 |
|
Large Business Rate |
£0.492 for properties with RV over £51K |
£0.506 for properties with RV over £51K |
The impact of this increase in actual monetary terms is illustrated in the following example calculation:
|
|
Annual Rates Payable |
||
|
Rateable Value |
2017/18 |
2018/19 |
Increase |
|
£20,000 |
£9,320 |
£9,600 |
£280 |
|
£100,000 |
£49,200 |
£50,600 |
£1,400 |
In terms of existing appeals, the increase in the Poundage Rate means any reduction in RV obtained will result in more monetary savings over the current five year revaluation cycle. It's therefore imperative you try to mitigate your rates liability.
As highlighted in our previous articles, there are also a number of other potential Relief schemes available when calculating business rates, e.g. Small Business Bonus Scheme, Empty Property Relief etc, which can prove beneficial to eligible businesses.
Please do contact our team to discuss how these proposed changes may affect your business and how we may be able to help.