Business Rates
Business Rates are applied to every non-domestic property in the UK and constitute a considerable property cost in addition to those such as rents and service charges.
The Valuation Office Agency (VOA) publishes the Rateable Value (RV) of every property in England and Wales in the Rating List. Separate lists exist for both Scotland and Northern Ireland.
- What is an RV? It is effectively the VOA’s opinion of the annual rental value of the premises at a fixed valuation date.
- How Are Rates Calculated? Once an RV appears in the Rating List the local council is required to serve a rates demand which will be calculated on a formula of the RV multiplied by the Uniform Business Rate (UBR), applying any transitional adjustments which may be appropriate. The UBR is adjusted annually by central government and cannot be challenged, it simply applies nation-wide.
- What are transitional adjustments? These are complex calculations set down by central government to cushion the blow of any large increases in RV when a new Rating List comes into force and unfortunately, to limit the benefits of any large decreases in RV. Transitional adjustments ensure that potential increases and reductions between Rating Lists are phased in over a number of years.
- Can RVs be challenged? The simple answer is yes although this is best done by a suitably qualified rating practitioner as RVs can go up as well as down and it is therefore important that the potential to reduce RVs is fully researched.
- What is the procedure for investigating RVs? Once we are instructed, arrangements will be made to inspect and measured the premises; research will be carried out into comparable evidence to determine whether or not the RV is excessive.
- Can I have peace of mind that my interests are in safe hands? Yes! If Conneely Tribe are instructed the person dealing your RV would be a qualified chartered surveyor and also a member of the Institute of Revenues Rating and Valuation (IRRV) and the Rating Surveyors Association. In addition, the firm is governed by the RICS/IRRV/RSA Rating Consultancy Code of Practice [Click here to download PDF of the Code].
- Are there other aspects which can be investigated to reduce liabilities? Yes, there are and generally the following aspects would be considered even if this is not an exhaustive list:
- Auditing accounts and liability calculations;
- Empty and part-empty rates mitigation and relief;
- Charity and discretionary relief for rating purposes;
- Material changes such as building works;
- Deletions, mergers and splits of rating assessments.
- When will RVs next be revised? A new Rating List will take effect on 1st April 2023, unless changed by government. There have been significant changes on how RVs are challenged and a PDF may be downloaded here which explains how this will work [ to download PDF click here].
- Curtains for the 2017 rating List? Not yet. This was originally meant to close on the 31st March 2022, but the Government changed this to 31st March 2021 however, with the Covid-19 pandemic the 2017 Rating List has been extended to 31st March 2023. Ratepayers will have until 31st March 2023 to lodge a Check against their current RVs. It could be more important than you realize as the impact of a reduction in your current RV could be carried through to the transitional calculations which will apply from 1st April 2023 onwards.
The Rating Consultancy Code of Practice – Download
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