If you own a commercial property, you may have come across the term “rateable value.” It is an essential factor in determining how much business rates you need to pay to the local council. Understanding the rateable value of your commercial property is crucial for budgeting purposes. Let’s delve into this topic in more detail.
What is rateable value?
The rateable value is an estimate of the yearly rental value of a commercial property, assuming it was in a reasonable state of repair and tenants were responsible for paying property taxes. It is determined by the Valuation Office Agency (VOA) in England, Wales, and Scotland, and the Land and Property Service (LPS) in Northern Ireland.
How is the rateable value calculated?
The VOA and LPS assess various factors while calculating the rateable value of a commercial property. This includes the rental market, location, size, usage, and any relevant property characteristics.
Can I find the rateable value of my property online?
Yes, you can find the rateable value of your commercial property on the official government websites of the respective countries. For England and Wales, you can check the VOA website, and for Northern Ireland, you should refer to the LPS website.
How often is the rateable value reassessed?
Rateable values are usually reassessed every five years, which ensures they remain accurate and reflect any changes in the rental market or the condition of the property.
Is the rateable value the same as the property value?
No, the rateable value is different from the property value. The property value represents the market value of the property, whereas the rateable value is specifically used to calculate business rates.
Can I appeal the rateable value of my property?
Yes, if you believe the rateable value assigned to your commercial property is incorrect or unfair, you have the right to appeal. There is a specific process to follow, and you can find relevant information and guidance on the government websites.
What happens if I don’t pay my business rates?
Failure to pay your business rates can lead to legal consequences, such as fines and court proceedings. The local council has the power to take enforcement action to recover the outstanding amount.
How can I reduce my business rates?
While you cannot directly reduce the rateable value, there are ways to potentially lower your business rates. This includes applying for rate relief schemes, such as small business rates relief or transitional relief, and negotiating with the council for discretionary rate relief.
Does the rateable value affect my rental agreement?
In some cases, the rateable value of a commercial property may influence the terms of your rental agreement. It is essential to consider the potential impact on both the landlord and tenant when determining rental costs.
What if I disagree with the rateable value after an appeal?
If you still disagree with the rateable value assigned to your property after the appeal process, you may have further options to seek resolution, such as referring the decision to a Valuation Tribunal or pursuing legal advice.
Can I reclaim business rates if my property remains vacant?
In certain circumstances, you may be eligible for a temporary relief on empty property rates. However, the rules and criteria for claiming relief vary between countries. It is advisable to consult your local council or refer to the government websites for detailed information.
Does the rateable value change if I make improvements to my property?
Making improvements to your commercial property may have an impact on its value. However, the rateable value is typically based on the rental market and property characteristics before any improvements were made.
Where can I find further information about rateable values?
For more details regarding rateable values and business rates, visiting the official government websites of England, Wales, Scotland, and Northern Ireland is highly recommended. These websites provide comprehensive information and guidance relevant to your specific location.
Now that you have a better understanding of the rateable value of your commercial property, you can ensure that you are equipped to navigate the world of business rates effectively. Keep yourself informed about the latest updates and be proactive in managing your property-related obligations.