“We cannot say there will be euphoria regarding this refinement in the revaluation process,” says Ian Froome, Vail Williams partner and head of marine & leisure, “but it is a cushioning of the significant increases faced by marina operators and should be accepted as such.”
His words come as the government makes a U-turn on marinas being excluded from lower rate multipliers in the forthcoming business rates revaluation. It’s a ‘victory for common sense’.
According to Vail Williams, this move brings marinas into the same category as retail and leisure businesses such as pubs and restaurants. Business rates will continue to be administered by local authorities. The Valuation Office Agency (VOA) updated the rateable values of all commercial, and other non-domestic, properties in England and Wales to take effect from 1 April.
The government previously announced that from 2026/27, existing business rate relief for retail, hospitality or leisure (RHL) properties would be replaced by a lower rates multiplier to calculate the business rates payable on those properties.
However, marinas were specifically excluded from the RHL lower rates multiplier. They faced being subjected to the standard business rates multiplier which applies to non-RHL business properties.
Following a campaign backed by British Marine, the Statutory Instrument (SI) which defines which properties would be eligible for the new RHL business rates multipliers is being refined.
“I recognise that marinas are distinct from transport properties and that they form part of the infrastructure of leisure activity,” Dan Tomlinson, exchequer secretary to the treasury, wrote to British Marine.
“The government will therefore be amending the SI ahead of the policy coming into force on 1 April to remove marinas from Schedule 1.
“This means that marinas with rateable values below £500,000 and that are wholly or mainly used for leisure/recreational purposes will be eligible for the lower business rates multipliers.”
Tomlinson says the online guidance will be updated, and local authorities will be made aware of the upcoming amendment.
The reversal means that qualifying marinas will benefit from the 43 pence RHL rate, rather than the standard 48 pence rate.
“This U-turn can be considered to be a victory for common sense and will benefit the vast majority of marinas which qualify for the lower business rates multipliers,” says Vail Williams partner and head of business rates Adam Barnfield (pictured – image courtesy of Nick Strugnell).
“However, there have been significant increases in the VOA assessments of the rateable value applied to marinas, with an average 23 per cent increase in values and an additional £5.8 million of rateable value – which equates to approximately £2.5m in additional revenue for the treasury.
“Although this is obviously a welcome change in stance from government, the increase in RV and the removal of the existing retail, hospitality and leisure relief will still have a significant impact on business rates liabilities.”
More information about business rates relief can be found on Vail Williams’ website.
The post Silver lining for UK marinas via amendment to business rate evaluations appeared first on Marine Industry News.
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