Business rates revaluation postponed

The government has revealed that a revaluation of business rates, scheduled to have taken place next year, will now be deferred until 2022 to help reduce uncertainty for firms affected by the impacts of coronavirus.

The government is continuing work on the fundamental review of business rates, with the key aims of reducing the overall burden on businesses, improving the current business rates system, and considering more fundamental changes in the medium-to-long term.

Additional Information

  • The Non-Domestic Ratings (List) Bill 2019-20 was originally introduced to bring the date of the next revaluation forward from 2022 to 2021.
  • The government remains committed to frequent revaluations to ensure that business rates receive bills that more accurately reflect up-to-date property rental values.

A revaluation is the review of the rateable values of all business and other nondomestic property in England at a particular point in time.

These are carried out to maintain fairness in the system by redistributing the total amount payable in business rates, reflecting changes in the property market.

A property’s business rates bill is based on a precise estimate of the premises’ rental value.

With changing circumstances as a result of the coronavirus pandemic, the next revaluation will not go ahead in 2021.

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