Provisional UBR Multiplier Announced Creates Highest Property Tax
The Department for Communities and Local Government (DCLG) has confirmed provisional Uniform Business Rate (UBR) multipliers for the 2016/17. Increases in the UBR are limited to the September RPI increase. The September RPI increase was 0.8% and DCLG has now confirmed that the UBR multiplier for 2016/17 will increase in line with this.
Currently the UBR multiplier for 2015/16 is 48.0 pence for small properties and 49.3 pence for large properties. DCLG has announced that the provisional figures for 2016/17 in England will be 48.4 pence for small properties and 49.7 pence for large properties – which are those with a Rateable Value of £18,000 or more outside London and £25,500 or more in London.
This means that there has been no increase in the Small Business Rate Relief Supplement, which is the difference between the multipliers for small and large properties. This supplement will remain at 1.3 pence for next rate year, the first year since 2011 that there has been no increase in this figure.
Final figures will only be confirmed after the Local Government Finance Report for 2016/17 on 1 March 2016. Assuming the provisional figures are confirmed they will represent the highest levels of property taxes throughout the OECD .
The UK Governments shows no appetite to reduce the burden on businesses by reducing the rates burden.
If you are concerned about the burden of business rates through to the 2017 rating revaluation and beyond then contact Roger Hannah & Co.’s rating team for advice as to how we can help reduce your bills.
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