Business Rates Revaluation- Is There an Agenda?
For many holiday cottage owners this is the first time they have been business rated when revaluation comes round and we have all received a rather daunting and detailed form to fill in.
Revaluation normally takes place every 5 years with the last one in 2010 and there has been some criticism in the general business community that the new rates will not come into effect until 2017 as due to the economic downturn many expect to pay less, particularly shops in struggling high streets.
The situation with holiday homes however may be somewhat different. The form is very detailed and tailored specifically to holiday letting including information on letting rates, occupancy, income and profitability.
So is there an agenda?
If you were paranoid it wouldn’t be difficult to imagine changes in the future to the detriment of holiday home owners- it’s hardly a group carrying a lot of electoral sympathy, in fact plugging the loophole exploited by fat cat second home owners could make a great headline.
Actions taken could include:
- Excluding holiday lets from business rates so they go back to paying council tax.
- Excluding holiday lets from small business relief so they pay the full rates
- Interpreting the value differently to make rates much higher so larger bills when relief is reduced or withdrawn
- creating a special category and billing structure for holiday lets.
Now I have no information implying that any of this is even being thought of or anything else planned but one thing is for sure, as most holiday home owners currently pay no rates at all it can’t get any better!
just in case you are still paying council tax here’s my previous article on the subject.