PARLIAMENT ACTS TO REVERSE SUPREME COURT DECISION

Professional Services News

In 2015 the Supreme Court made a decision in the case of Woolway (VO) v Mazars LLP (2015) which made huge changes as to how properties were valued for the purposes of business rates.  This created a huge amount of paperwork, confusion and a significant increase in rates payable for many businesses.  The rates payable due increased as businesses lost their entitlement to small business rates relief and instead of having one large assessment that benefited from quantum due to its size their assessment was split to create a number of smaller assessments, all assessed at a higher rate increasing the rates payable.

Parliament has sought to intervene with the snappily titled ‘Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018’.  This allows ratepayers to reverse the effects of the Supreme Court decision.  This Supreme Court decision meant that any properties that did not directly intercommunicate such as adjacent office floors in a multi let building or car parking spaces in a multi let building were to be given separate Ratable Values.

Alastair Fearn, Director within FHP’s Business Rates Team commented:

“The opportunity for ratepayers to apply for their properties to be merged back together is open for a limited period, until 31 December 2019.  Therefore we would urge any ratepayers who think they might be affected to get in touch as we will be able to help you.

The effects of a merger may also have benefits in terms of the 2017 Rating List so it really is worth taking advantage of this window of opportunity.”

For further information or if you would like to speak to FHP about how we may be able to help you with any business rates liabilities you may have please contact Alastair Fearn on 0115 9082100 or alastair@fhp.co.uk.