Business Rates - Revaluation 2010

The Valuation Office Agency (VOA) carries out a revaluation of all rateable values in England and Wales every 5 years, in order to maintain fairness within the rating system.  Owners and tenants of commercial property should be aware that the next revaluation is due to come into effect on 1 April 2010.  It may come as a surprise to some people that the 2010 valuations are based on the value of the property on 1 April 2008.  In the current climate this often begs the question, "We are now in a recession - how are 2008 values fair?"  The VOA answers the question by stating that if rateable values increase at revaluation then the Government reduces the multiplier in calculating the rates payable so that the overall national bill remains the same.  The aim of a revaluation is to redistribute the same overall bill to businesses based on the relative changes in property values since the last valuation date.  All properties are valued on the same date so it does not matter if the revaluation is done at a "high" or a "low" point in the property market. 

As a result of the rateable value of your property being revalued your rates bill could be increased, decreased or unaffected.  The VOA will publish on-line the new rateable values and you may well have received written confirmation from the VOA in the post.  As previously mentioned the new rateable values will then come into effect from 1 April 2010.

If you have reason to believe that the rateable value allocated to your property is wrong, then you have the right to appeal.  This could potentially result in a significant cost saving to you.  The effects of the revaluation will last for at least 5 years so it is important that you take prompt action to have your rateable value carefully examined.  We have the expertise and professional contacts to recommend a chartered surveyor to act on your behalf. 

One final point, please bear in mind that if you carry out extensions to your property this will give rise to a change in its rateable value.  If you would like any additional information please do not hesitate to contact Paul Breedon, Head of Commercial Property at Clough & Willis Solicitors on 0161 764 5266 or email paul.breedon@clough-willis.co.uk