So why is the rateable value £95,000 when my rent is only £50,000?

admin — Fri, 19 Oct 2012 11:53:34 +0000

This is a common question at the moment and one that business owners are struggling to comprehend. Surely it’s the market rate today that sets all prices. Isn’t that how basic economics works?

Well not when it comes to Business Rates!

Broadly speaking the RV, set by the Valuation Office Agency (VOA), is based on rental value. However although by title it’s called the 2010 Rating list the figures used are those set and collated from 2008. Economic times back in 2008 were vastly different open market rents much higher.

As the RPS team have pointed out before, physical changes to your property and its locality can be reflected in a claim on Business Rates Relief, economic changes cannot.

On the horizon though is the 2015 revaluation that will reflect RV’s as at April 2013.

At RPS we support the British Property Federations (BPF) efforts to put in place a more equitable and accurate form on land taxation than a system that will always remain 5 years behind economic and business cycles.

If you are unclear as to how your Business Rates have been calculated and to see if they can be challenged they contact us to receive sound and clear property advice.

6 steps to lowering your business rates demands

admin — Sun, 12 Jun 2011 15:57:42 +0000

Business rates demands are an often forgotten element of the cost of property ownership and there are many examples of business’ that have run into financial difficulty complaining that the high charges were a factor in their business failure.
Your business rates are calculated by the Valuation Office Agency (VOA) and are collected by your local authority. The calculation is based on your property rental value and the use to which your property is made (or can be made).
The last revaluation for calculating your rates was carried out in April 2010 and since then many business organisations have seen an increase in the demands being raised.
You should check the calculation made on your business is correct as there are areas from which you can appeal for a reduction or relief from these charges. Here are 6 quick steps that could see your charges drop;
1 The Government introduced a temporary increase for businesses eligible for Small Business Rates Relief (SBRR). Check your eligibility.
2 Mandatory relief is available to registered charities and to Community Amateur Sports clubs. Do you qualify?
3 Discretionary relief is available to non-profit making organisations and this is judged on set policy guidelines. If you think you qualify then approach the VOA.
4 Is your property empty or unoccupied, have you claimed relief from payment (3 months for offices and a further 3 months for industrial units)?
5 Has there been a negative impact on your trade due to vacant commercial properties in the local area, or major works such as road digging that has reduced customers accessing your business?
6 Do you still use the premises in the same way as you did when the revaluation took place, is there a new layout or alterations? These could affect the way the property is valued.
If you are thinking of appealing to the VOA then ensure that you have good records such as dates and photos as evidence to support your case. The rewards can be significant and you should consider seeking specialist advice from an RICS chartered surveying practice.
Further information is available from;
Valuation Office Agency www.voa.gov.uk
Your local authority will have leaflets such as Summary Valuations (V07132)

Resource Property Solutions Blog » VOA

So why is the rateable value £95,000 when my rent is only £50,000?

6 steps to lowering your business rates demands