VOA publishes draft rateable values for BT
The Valuation Office Agency (VOA) has proposed rateable values for companies in England and Wales, for use from 1 April 2017. It has applied rateable values to BT of £715m in England and £28m in Wales, which compares to the current rateable values of £158m and £7m, respectively. The rate liability payable is calculated by applying a percentage multiplier to the rateable value. The Department for Communities and Local Government (DCLG) has indicated that the multiplier will reduce to around 48% from around 50% currently. The DCLG is consulting on transitional relief arrangements. Under the Government's preferred transitional relief approach, the change to BT's rate liability would be phased in over five years, with the first year's increase being tens of millions of pounds in 2017/18.
The vast majority of the rate liability is attributed to regulated markets in Ofcom's charge controls.
BT considers the proposed rateable values to be excessive and will challenge the VOA on its method and assumptions. BT will also be responding to the transitional relief consultation.
BT's financial outlook for both 2016/17 and 2017/18 is unchanged.
Ross Cook Tel: 020 7356 5369
Carl Murdock-Smith Tel: 020 7356 4909
BT's purpose is to use the power of communications to make a better world. It is one of the world's leading providers of communications services and solutions, serving customers in 180 countries. Its principal activities include the provision of networked IT services globally; local, national and international telecommunications services to its customers for use at home, at work and on the move; broadband, TV and internet products and services; and converged fixed-mobile products and services. BT consists of six customer-facing lines of business: Consumer, EE, Business and Public Sector, Global Services, Wholesale and Ventures, and Openreach.
For the year ended 31 March 2016, BT Group's reported revenue was £19,042m with reported profit before taxation of £3,029m.
British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on stock exchanges in London and New York.
For more information, visit www.btplc.com
This information is provided by RNS