Check your non-domestic rating assessment now

All rateable values are regularly reassessed: this is known as a ‘revaluation’. The last revaluation of non-domestic properties in England and Wales came into effect in April this year and was the first for six years. It set out all rateable values to be used by local authorities to determine business rates. Business rate liabilities are based on every property’s assigned ‘rateable value’. This is multiplied by a ‘multiplier’ or ‘poundage’ to arrive at a property’s annual liability. Rateable values for non-domestic properties are normally assessed on the basis of the annual rental value of a property.

Here at Forge, we are encouraging all businesses occupying commercial premises to have a close look at their non-domestic rating assessment. We have looked at a number of cases recently which have actually flagged up problems with the rates valuation. These have included:

• Measured areas being incorrect
• Areas with low head height being mistakenly charged at full rate
• Increases following the new rating list from 1^st April 2023 and assessments which are not in line with rental values.

One example is where we have been looking at an industrial unit where the rateable value has increased by 16% from the old list to the new list. This is impacting the landlord’s ability to re-let the unit.

It is important not to assume that your rating liability assessment is correct. Quite often there will be something that can be done to improve the situation. In the first place you should check that the factual details held by the VOA are correct. Next, make sure that the assessment is in line with comparable premises, which are similarly located. Lastly, find out whether any reliefs may be available to reduce the liability.

Valuation experts at Forge Property Consultants will be happy to offer advice and guidance on any matters relating to rateable values. Contact the team to find out more.