Spring Statement 2018: Property Tax
There was little in the speech on property, but we were reminded of previous announcements on business rates relief, and the Chancellor also brought forward the start of the new three-yearly revaluation cycle. Other property related announcements included a commitment to build 215,000 new homes in the West Midlands, facilitated by a grant of £100m from the Land Remediation Fund, and a doubling of the Housing Growth Partnership which provides financial support for small builders.
The Chancellor announced that the next property revaluation for business rates will be brought forward from 2022 to 2021. In accordance with the announcement made in the 2017 Autumn Budget, property revaluations will then take place every subsequent 3 years instead of every 5 years as is currently the case.
The government had previously raised the possibility of a self-assessment approach to valuation, but this has been rejected and the Valuation Office Agency will continue to assess the rateable values as they do at present (and the government has said it will ensure they are sufficiently funded to do this).
The government has said that it is bringing forward the next revaluation “to ensure ratepayers benefit from more frequent revaluations at the earliest point”, although there will undoubtedly be some who will be adversely affected by this.
Many businesses affected by the most recent revaluation will have been hoping for more from the Chancellor’s statement as the previously announced measures to provide relief, targeted at pubs and small businesses, leave many businesses still facing large increases.