The 2017 rating revaluation is rapidly approaching and now is the time for property owners and occupiers to plan for the changes. So here’s what you need to know:
How are business rates calculated?
In England and Wales the Valuation Office Agency (VOA) is responsible for assessing the rateable values of all non-domestic properties. Every commercial property in the UK will get a new rateable value in April 2017, which for most properties is based on an open market rental value that it could have let for two years beforehand. With seven years since this was last done, it is anticipated that the gap between winners and losers will be far wider than ever before.
The amount of rates you pay is calculated by multiplying your rateable value by the relevant year’s rate poundage, or multiplier. As this is currently around 50% in pounds, it’s vital to ensure each rateable value is as low as possible.
30 September 2016
The Valuation Office will make the new Rateable Values available to all on line https://www.gov.uk/correct-your-business-rates and you can check the amount. For obvious factual errors you can informally contact the Valuation Office.
Various announcements are expected in this period, including details of the new multiplier and transitional arrangements.
01 April 2017
All new Rateable Values go live, as does the government’s new system called “Check, Challenge, Appeal”. Concerns are this will complicate and potentially lengthen the process of questioning your rateable value, as well as introducing a fee to appeal.
Employ Property Chartered Surveyors who are RICS registered. Many sectors have specialist business rates surveyors who specialise in your industry – http://www.rics.org