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14.04.15

Warning issued to GPs over business rate appeals

GP Surveyors, the UK’s leading firm of chartered surveyors for doctors' surgeries, has warned that GP practices who appeal their business rates valuations could be faced with a reduction in notional rent reimbursement. 

The organisation has issued the caution while it says NHS England, and some private companies, are approaching GP surgeries offering to challenge their business rates on their behalf.  

“There is no financial benefit for property-owning GP surgeries to reduce their business rates because their rates are paid by NHS England,” said Andrew O’Dowd, director at GP Surveyors.” 

He explained that both business rates and notional rent are implemented by the Valuation Office Agency/District Valuer and they are generally determined by the quality and size of a building, and the type of area that it is located. Therefore, if a reduction in business rates is recorded, for example due to a difference in size, it is possible that this will be used by the District Valuer to support a reduction in Notional Rent too. 

“From a GP practice’s perspective, it is much better not to challenge business rates as this will help to avoid any unexpected decreases in notional rent,” said O’Dowd. 

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