FAIRER BUSINESS RATES APPEALS SYSTEM UNVEILED
(11 March 2005)

New arrangements that will make the business rate appeals system both faster and fairer for ratepayers were laid before Parliament today. Under the new system ratepayers will still have the right of appeal against each and every valuation. However they will be given more time to submit fully evidence-based appeals and any change in value will be backdated. By reducing the number of rushed, unnecessary and unsubstantiated appeals made to the Valuation Office Agency and by improving the quality of information submitted with appeals the system will be streamlined and therefore faster.

Under the new system

* A ratepayer will be able to appeal against the rateable value of their business premises at any time during the five year life of the rating list (1 April 2005 and 31 March 2010).
* Any change in the value will be backdated to the date the list was compiled or to the date of any alteration to the list.
* Ratepayers will have time to consider their proposal and find the appropriate information before submitting their proposal without losing any rights to have a changed valuation backdated. * Ratepayers will also have one opportunity to submit a proposal against an entry on the rating list or to submit one proposal against an alteration that has been made to the rating list
* Ratepayers will be able to submit appeals electronically.

Local Government Minister Nick Raynsford said: "It is important that, as the 2005 Revaluation comes into effect, we have in place a robust appeals system - one that serves the interests of ratepayers fairly. I believe the appeals system announced today does just that. To continue with an arrangement that allows unlimited duplicate appeals to be made places an unnecessary burden on the appeals system and means that appeals take longer to resolve as a result."

The Government consulted on changes to the system in January and February. After consideration of the representations received, we have decided to proceed with most of the proposals in the consultation paper. However, we have simplified the requirement on ratepayers to produce certain rental information when making a proposal.

THE VALUATION OFFICE

The Valuation Office Agency (an Agency of the Inland Revenue) values all non-domestic premises for the purposes of business rates. Ratepayers have a right to make a proposal to the VOA to alter the valuation, often referred to as an appeal, and if no agreement on the valuation can be reached the proposal is transferred to the Valuation Tribunal Service as an appeal. About 1.5 million proposals are made in the five-year life of the rating list. Many are withdrawn, are duplicated or have scant grounds underpinning their proposal. The Non-Domestic Rating (Alteration of Lists and Appeals) Regulations 1993 define the circumstances under which a ratepayer may submit a proposal to the VOA.

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