Hotels urged to act now to avoid missing out on over £12.6m in rates rebates

25th January 2010, 10:21am

A leading business rating specialist has warned Britain’s hoteliers that they have only weeks left to reclaim tens of thousands of pounds each in overpaid business rates from the last five years.

The deadline expires on 31st March and according to Manchester-based CVS (Commercial Valuers and Surveyors Ltd), the majority of hoteliers are unaware these rates can be challenged.

With hotels still being hit by a fall in profit per available room, the company, which has already saved its hotel clients over £7 million, says hoteliers are paying an average of 13.4% per year too much on their business rates.

Over 13,492 hotels have been assessed during the 2005 Ratings List, with a total Rateable Value liability of £947m, that's an average rateable liability of £157,646. Successful appeals result in typical savings of over £21,000.

Through working with CVS in their appeals for the 2005 Ratings List, hotels across the UK have been able to achieve significant savings, including The Lanesborough luxury five-star hotel in London saved in excess of £1 million and the Donnington Grove Hall Hotel in Newbury, Berkshire which received a 30% reduction in its Rateable Value from £185,000 to £126,000 resulting in five year savings of over £85,000.

CVS head of rating, Paul Burnett, said: "Business Rates are a major expense to any company. However, it is often the case that the majority of commercial property occupiers are unaware that these rates can be challenged. However, from 31 March, your right to claim back overpaid business rates for the last five years will end when the next Rating List is introduced. This means that the clock is definitely ticking and time is running out to lodge an appeal against your rateable value before it is permanently altered."

With time running out to appeal charges dating back to 2005, CVS is also warning that hoteliers should be looking to the future to ensure charges are accurate for commencement of the 2010 Ratings List.

"The Valuation Office Agency's (VOA) approach to adopting a percentage of the hotel takings as a basis of arriving at your 2010 rating assessment is fundamentally flawed," said Chris Barker, Senior Rating Consultant at CVS. "Currently hoteliers may be taxed on their expertise, levels of service and the nature of furniture and fittings. Rating assessments should be based on the rental values as at 1st April 2008 at a time when property values were falling."

For further advice and guidance on how businesses working within the sector can reclaim business rates, visit www.cvsuk.com or call 0161 291 0330.

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