NEW RATEABLE VALUES – WHAT IT MEANS FOR YOUR BUSINESS

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Posted on Thursday, October 27, 2016

NEW RATEABLE VALUES – WHAT IT MEANS FOR YOUR BUSINESS

“All UK firms pay a tax on the shops, offices, warehouses and factories that they use, and for many rates are their third biggest outgoing (after rent and staff costs).  Business rates are based on the value of the real estate but also take into account other values, such as that of equipment or machinery, and of course the actual industry sector in which the business in question operates.

“Every five years the underlying value of properties is assessed to determine their "rateable value", a figure that in essence represents the annual rent, the rentable value in other words, for which the property could be let.  But the underlying property values that are used are always from two years previously, so for example the 2010 rates were based on property values in 2008.

“The rateable value is then combined with the "multiplier" - a figure set by the government each year - to determine the final bill.   The multiplier is set to ensure that the total amount collected in business rates remains the same, making it "revenue neutral".  Today’s revaluation is therefore based on rentable values on 1 April 2015 and comes into effect on 1 April 2017.”

Fortunately, when business rates are revalued the government provides a transitional arrangement, to help companies adapt.  This arrangement limits the amount that bills increase each year, providing a financial cushion that in the first year will apply to over 600,000 properties, according to the government.

“All businesses with properties, most of the time, incur a rating liability of some sort be it empty, newly occupied properties or business’ with multiple properties. In many cases, business’ can apply for relief although many are unaware of this, and some properties, such as agricultural land or religious buildings are exempt.”

FSS is the foremost RICS registered business located in Harrogate which undertakes ratings appeals, so if you feel the rateable value for your property, as set by the Valuation Office Agency (VOA), is wrong, but the VOA won’t change it, then come to us.  We will assess your case honestly and with integrity, and if you’ve grounds for appeal, we will appeal to the VOA for you. If you’re still unable about the rateable value, we can then take your case to the Valuation Tribunal.

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