What is a rateable value for business?

**What is a rateable value for business?**

A rateable value for a business is the estimated open market rental value of a non-domestic property at a specific point in time. It is used to calculate the business rates that a company must pay to the local council.

The rateable value is determined by the Valuation Office Agency (VOA) in England, the Scottish Assessors in Scotland, and the local councils in Wales and Northern Ireland. They assess the value based on factors such as the size, location, usage, and condition of the property.

FAQs:

1. Why is rateable value important for businesses?

The rateable value is crucial because it determines how much a business has to pay in business rates, which is a significant expenditure for many companies.

2. How often is the rateable value reviewed?

The rateable value is reviewed every five years in England, Scotland, and Wales. This is done to ensure that the valuations reflect current market conditions.

3. Can a business appeal against the rateable value?

Yes, a business can appeal the rateable value if they believe it is incorrect. They can provide evidence of similar properties with lower values or highlight any significant changes that may impact the value.

4. Does the rateable value affect small businesses differently?

Small businesses may be eligible for certain rate relief schemes, such as Small Business Rate Relief in England. These schemes aim to support smaller companies by reducing their business rates burden.

5. How are business rates calculated based on rateable value?

To calculate the business rates, the rateable value is multiplied by the “multiplier” set by the government, known as the Uniform Business Rate (UBR). For example, if the rateable value is £10,000 and the UBR is 50p, the annual business rates would be £5,000.

6. Do all businesses have to pay business rates?

Most non-domestic properties are subject to business rates. However, some exemptions apply, such as agricultural land and buildings, certain charities, and newly built properties with a temporary exemption.

7. How does the rateable value affect rental costs?

In some cases, the rateable value can influence the rental costs of a non-domestic property. Landlords may take into account the business rates payable by the tenant when determining the rent.

8. How are businesses notified of their rateable value?

The VOA or respective local councils will send a notice to businesses with their updated rateable value after the revaluation takes place.

9. Can the rateable value change between revaluations?

The rateable value can be changed before the scheduled revaluation if there are significant alterations to the property, changes in market conditions, or errors in the original valuation.

10. What happens if a business disputes the rateable value?

If a business disputes the rateable value and no agreement is reached through negotiation, they can appeal to the Valuation Tribunal. This independent body will review the evidence and make a determination.

11. Are there any exemptions or reliefs available for businesses?

Yes, there are various exemptions and reliefs available for businesses, depending on the specific circumstances. These include small business rate relief, rural rate relief, and charitable rate relief, among others.

12. How can businesses reduce their business rates?

Businesses can explore various avenues to reduce their business rates. This includes applying for reliefs and exemptions, seeking professional advice on rate reduction strategies, or engaging in negotiations with the VOA or local council.

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