Consider a rates challenge
Knight Frank is advising occupiers of Central London office space to investigate the level of their business rates, to see whether they are excessive. It notes that business rates are among the few taxes to be based on an opinion of value, and this opinion can be successfully challenged.
Knight Frank points out that current business rates are based on peak rental levels from 2007-08. “These assessments were due to be re-based to reflect current 2013 rental elves, which would have seen large reductions in the level of assessments for many Central London offices,” the firm adds.
But on March 26 the Growth and Infrastructure Bill received its third reading in the House of Lords and this included the postponement of the business rates revaluation. This will have a “considerable impact on the occupation costs for central London office occupiers,” Knight Frank warns – hence its advice to look closely at charges.
The postponement of the revaluation will now see business rate charges increase year-on-year until 2017 at the earliest, Knight Frank notes.
Any reductions in assessment can “invariably” be backdated to April 2010, it adds, generating substantial refunds, and lowering the occupational costs of a property until 2017. Knight Frank points out that there are no upfront costs to a formal appeal against an assessment, as fees are success-related, and are a small percentage of any actual savings that could be achieved in the rates payable.
