BUSINESS RATES

Consultation on Avoidance and Evasion in the Business Rates System (England)

The Government has launched a consultation on avoidance and evasion in the business rates system to protect essential funding for local services. 

The consultation consists of three sections. The first focuses on specific proposals to reform Empty Property Relief, to address the most widely used and publicised means of business rates avoidance. This relief, when properly applied, provides important support to landlords with vacant properties: the Government is therefore seeking views on measures which aim to balance support for those who need it with limiting scope for abuse.

The second section serves as a call for evidence on wider avoidance and evasion activity within the business rates system. The Government welcomes any information respondents have on other methods of avoidance and evasion, and the scale of such activity. This section also includes questions on the sufficiency of the powers and information available to local authorities to combat avoidance and evasion.

The final section concerns poor practice by rating agents. The Government recognises that most rating agents provide a valuable service to their clients to a high professional standard. Nevertheless, some agents seek to take advantage of their clients or actively promote avoidance strategies. The consultation will seek to understand the nature and scale of any issues, and identify potential action the government could take to help address poor practice.

The consultation can be found at https://www.gov.uk/government/consultations/business-rates-avoidance-and-evasion-consultation.

The closing date for responses is 28 September 2023.

COUNCIL TAX

Fairer Council Tax: Consultation [Scotland]

This joint Scottish Government/ COSLA consultation is seeking views on plans to increase the amount paid by people in bands E, F, G and H in Scotland. This aims to address criticism that the system is unfair, because at present those in the lower bands pay a higher proportion of the value of their property than those in the higher bands.

Around 75% of properties would be unaffected if the proposals, which could be phased in over a period of three years, were implemented. The Council Tax Reduction scheme would continue to offer lower bills for those unable to afford their council tax, regardless of what band they are in.

Council Tax band multipliers can be amended by regulations. This was done from the start of the 2017 Council Tax year, resulting in the tax for properties in Bands E, F, G and H being increased by 7.5%, 12.5%, 17.5% and 22.5% respectively