What is rateable value commercial property?

Commercial property, including shops, offices, factories, warehouses, and other non-residential buildings, are subject to business rates in the United Kingdom. In order to determine the amount of business rates payable on a particular property, the local government assigns a rateable value to it. This rateable value is the estimate of the property’s open market rental value on a specific date, known as the valuation date.

What is the rateable value used for?

The rateable value of a commercial property is utilized as the basis for calculating business rates, which are a form of local taxation imposed on non-domestic properties in the UK. The local government multiplies the rateable value by a multiplier, known as the national non-domestic multiplier or uniform business rate, to determine the amount of business rates owed by the property owner or occupier.

How is the rateable value determined?

The rateable value of a commercial property is usually determined by the Valuation Office Agency (VOA), an executive agency of Her Majesty’s Revenue and Customs (HMRC). The VOA assesses various factors such as the property’s size, location, usage, and rental market conditions to estimate its market rental value on the valuation date.

When is the valuation date?

The valuation date is usually set for every five years and is used to determine the rateable value for a particular property. The most recent valuation date in England and Wales was the 1st of April 2017, while in Scotland it was the 1st of April 2015.

Can the rateable value change?

Yes, the rateable value can change over time. If there are any significant changes to the property, such as renovations or extensions, or if there have been changes to the rental market conditions since the last valuation date, the rateable value may be adjusted. The rateable value can be reviewed and updated in some cases, usually after an appeal or on request.

What if I disagree with the rateable value given to my property?

If you believe that the rateable value assigned to your commercial property is incorrect, you have the right to appeal against it. You can provide relevant evidence, such as rental prices of similar properties in the area or details of any physical changes to the property, to support your appeal. The Valuation Office Agency will review your appeal and either amend the rateable value or provide you with reasons for maintaining the current value.

How do I find the rateable value of a property?

You can find the rateable value of a commercial property by searching the online database of the Valuation Office Agency. The database provides rateable values for properties in England, Wales, and Scotland.

Are there any exemptions or reliefs for business rates?

Yes, there are several exemptions and reliefs available for business rates. Small properties with a rateable value below a certain threshold may qualify for Small Business Rates Relief, which provides a reduction in business rates. Certain types of properties, such as agricultural land or buildings used for charitable purposes, may also be exempt from business rates. Additionally, there are various temporary relief schemes, such as retail relief or COVID-19 support measures, implemented by the government to assist businesses during specific periods.

Is the rateable value the same as the property’s market value?

No, the rateable value is an estimate of the property’s open market rental value, while the market value refers to the price the property would fetch if sold on the open market. The rateable value is used solely for calculating business rates and does not represent the property’s market value.

Can I negotiate the rateable value of my property?

The rateable value of a commercial property is determined by the Valuation Office Agency and is not negotiable directly with them. However, if you successfully appeal against the rateable value, it can be adjusted based on the evidence and arguments presented during the appeal process.

Can I get a refund if the rateable value is reduced?

If the rateable value of your commercial property is reduced following an appeal or review, you may be entitled to a refund of the overpaid business rates. However, the refund process may vary depending on the local government authority, and it is advisable to contact them directly to inquire about the refund procedure.

Can the rateable value be increased?

Yes, the rateable value can be increased if there are significant changes to the property or local rental market conditions since the last valuation date. However, any increase in the rateable value will usually be implemented at the next scheduled revaluation.

Is the rateable value the same across the UK?

No, the rateable value system and multiplier may differ between England, Wales, Scotland, and Northern Ireland. Each country has its own approach to setting and calculating business rates, although there are similarities in the overall process. It is important to consult the appropriate government agency or local authority for accurate information regarding business rates in a specific region.

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