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2010 Rating Revaluation

The Valuation Office Agency has now completed the vast exercise of revaluing business properties throughout the country.  The new rateable values will come into effect on 1st April 2010.   These rateable values will be based on market rental values at 1st April 2008 and will remain effective for five years. 

The first results of the revaluation indicate, according to the Government, that 60% of businesses will see a fall in next years rates bills. 

As a result of revaluation and the transitional rate relief scheme being introduced, all regions of the country, except London and the south west, could on average see rates bills fall or stay the same. 

Industry and the manufacturing sector could see falls on average of 3%.  High Street retailers will, on the whole, see little change but large supermarkets are likely to see significant increases in rate liability.

These projections are produced by the Government and assume that the multiplier used for 2010/11 to arrive at actual rates payable falls by 15% from that used in 2009/10. 

The Government is painting the likely results of the revaluation in the best possible light but what is not made clear in their projections is how, if at all, the substantial fall in rental values which has occurred post 1st April 2008 in most property sectors will be reflected. 

The statute governing business rates does allow for changes which have occurred in physical factors since 1st April 2008 (eg. increases in vacant properties) to be reflected in rateable values effective from 1st April 2010.  The degree to which such changes will be reflected is questionable. 

On 30th September 2009 the new rateable values will be published on-line.  The majority of business rate payers will be sent details of their new valuations during October.  Once these draft rateable values are received it is essential that consideration is given to them and advice taken as to how fairly they reflect the relevant factors existing at both 1st April 2008 and 1st April 2010. 

Appeals against new rateable values cannot be made until 1st April 2010 but the six months available prior to that date should be used to carefully consider and investigate the draft valuations. 

storeys:ssp have given rating advice to clients in various sectors and geographical locations over many revaluations and our experience and expertise is available to all business ratepayers. 

For more information please contact:-

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New Business Rates Deferral Scheme for 2009

The Chancellor, Alistair Darling, announced a new scheme on 31st March 2009 to cushion the impact of the increase in Non Domestic Rate bills for 2009/10

The annual rise in rate liability is based on the inflation rate in September, which was 5%

This has resulted in an increase in rates bills a great deal in excess of the current inflation rate which is heading towards negative figures.

In addition to this, the Transitional Relief scheme ended on 31st March 2009 which meant that many ratepayers are facing increases significantly higher than 5%

The new scheme will not actually reduce rate liability. It will simply give ratepayers the option to defer some of the amount due for this year, and pay it over the following two years.

The scheme will not come into force until later in the year, and until then ratepayers must pay the amount demanded on their current bills. The precise details of the scheme are not yet known, but the general aim of the scheme is to allow ratepayers to defer 60% of the increase they’ve seen this year and pay it back in 2010 and 2011

We will give more information as soon as we have it.

For more information please contact:

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Government wants information on your property

In preparation for the 2010 Rating Revaluation the Valuation Office Agency are sending out questionnaires to ratepayers seeking information on rents paid and,in some cases,trading information. This information is required by the Valuation Office Agency (the Government body responsible for the rating of business premises) to assist them with their task of undertaking a nationwide Revaluation of all business premises which will be effective from 1st April 2010.

It is essential that all ratepayers give attention to these questionnaires as there are financial penalties payable for late completion. Advice needs to be taken as to how to complete them and our specialist rating team are available to assist with all queries.It is also important for all business occupiers to be aware of the implications of agreeing rents on commercial/industrial properties at this time as the valuation date for the 2010 Revaluation is in this year (1st April 2008) and agreements reached will be used as evidence for the new rating assessments which come into effect in 2010.

storeys:ssp rating team are available to advise on the implications of rents agreed and can also advise on current rating appeal opportunities that exist on both occupied and vacant property.

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