Stephen Hill, partner at Vail Williams and member of its business rates team, based at the Thames Valley office, explains what businesses face when their new bills arrive next year.

The financial impact of the 2017 rating revaluation will be felt by most businesses located in the Thames Valley after the arrival of the new rate bills in March.

Larger occupiers which concerns properties with 2017 List assessments over a rateable value of £100,000 will see an immediate surge in their rate liabilities, potentially more than 45 per cent higher than the amounts payable in the current 2016/17 rate year.

This is due to a change in valuation date on which the new 2017 List assessments are based (an antecedent date of April 1, 2015 from that of April 1, 2008 for 2010 revaluation period), which has resulted in significant increases on many commercial properties in the town, allied with the Government's current consultation paper for transitional arrangements - the system for phasing in increases and decreases in rate liability as a result of the 2017 revaluation.

This imperfect 'property tax' storm will impact financially on the operating costs for many organisations across the Thames Valley, with the way ahead also clouded by the imposition of a complex 'Check, Challenge, Appeal' regime that is replacing the existing appeals process.

While an increase (or decrease) in the 2017 List Rateable Values doesn't automatically mean these new assessments applied by the Valuation Officer are incorrect, the rental evidence we've analysed so far indicates that the new levels should be scrutinised and reviewed well in advance of April.

The draft 2017 Rating List was published on September 30, 2016 and the new assessments can be viewed online via the gov.uk website. In our professional opinion as a Thames Valley-based property consultancy, it has never been more important to prepare your rates mitigation game-plan ahead of a revaluation of the rating system!

Stephen Hill, Partner, Vail Williams