Since 1st April 1990, there have been regular Rating Revaluations performed by the Valuations Office Agency (VOA). Revaluations often tend to be on a five yearly basis using known rental values from two years prior. The last, and current, rating was performed way back in 2010 and is based on the rental values from 2008. The reason it’s been heavily criticised is that many consider 2008 as a time when rental values were at their peak just before the great financial crash. The knock on effect of fixing the prices for another 2 years has meant that businesses suffering from the crash are being subjected further by unrealistic business rates which no longer reflect the state of the property market.
What should have taken place back in 2015 is now finally upon us and the new 2017 rating assessments will eventually be available within the next few weeks. Your draft rateable value and your summary valuation for 2017 onwards is expected to be published on 30th September 2016. Understandably, the VOA will not be sending out any printed valuations so you will have to look up your premises online to find out how it effects you.
When a revaluation happens, the government assesses the property market from rental rates data of two years prior (in this case, rental prices from 2015). They then adjust the rateable value to reflect any changes in the property market. This adjustment is then applied to all properties for the VOA and your local council to recalculate the business rates that apply to you. In order to make sure your valuations are accurate, you may need to give the VOA or your assessor up-to-date rental evidence for your property when it gets revaluated.
Six months after this date, on the 1st April 2017, the new rates will come into effect and your business rates will be set for another 5 years. It is very important that you seek professional advice if you believe your rates to be incorrect. Call us today to see if we can help you get the best rates possible.