Every five years the Valuation Office Agency re-value all business properties to reflect their notional rental value at a date two years prior to the new figures coming into force. The current Rateable Values are intended to reflect values as at 1 Apri, 2008.
To arrive at the amount you pay by way of rates annually, the rateable value is multiplied by the rate in £ which is set by Government following the revaluation and this is increased annually. The rate in £ for 2010/11 is 41.4 pence in £ for properties over £18,000 Rateable Value (43.3 pence 2011/2012) and 40.7 pence in £ for properties under £18,000 Rateable Value in England (42.6 pence 2011/2012).
There are exceptions to the method of arriving at the amount of rates payable annually. The Government determined that it was unacceptable for occupiers to face huge increases in liability following a Revaluation. It was decided that large increases should be phased in over a number of years and the liability will be lower than the rateable values times the rate in £. However, to pay for the large increases, those whose rate liability should fall substantially following Revaluation, will also have their reductions in liability phased in over a number of years.
Appeals against your rating assessment
Following a Revaluation you are entitled to appeal your rateable value. There is no time limit for lodging an appeal against the initial assessment which can be made any time up until 31 March 2015 when the next Revaluation comes into force.
As rates are based upon rental values, your rent is of some importance, particularly if it was fixed around April 2008. The rating assessment may also include some items of plant and machinery such as gantry rails and compressors if they are present on site and also mezzanine floors, all of which are unlikely to be included in your rent.
It is important to check that the Valuation Officer has not missed any extensions or mezzanine floors as an appeal might lead to an increase in assessment. Obviously an appeal might not be appropriate in these circumstances.
BNP Paribas Real Estate has been advising on rating appeals for many years. They have reviewed all properties owned by HPH and if you are a tenant you will have received or will shortly receive advice in connection with the 2010 potential for a reduction from HPH.
BNP Paribas Real Estate have agreed a fee scale with HPH and offer competitive quotations as HPH have already paid for some of the initial work. Please note the fees are based on the reduction in rates payable achieved. If you would like to discuss your rating assessment please contact Lindsay Holdoway at HPH or Richard Barker at BNP Paribas Real Estate on 0121 237 1289 or email: Richard.Barker@bnpparibas.com.
Small Business Rates
The previous Chancellor in his Budget statement announced that the amount of Small Business Rate Relief in England is to be increased but only from 1 October 2010 and only for a period of 12 months.
The present Chancellor in his Budget in June 2010 has confirmed that legislation will now be laid for this temporary increase in the level of small business rate relief.
Currently the Small Business Rate Relief Scheme from 2010/11 offers relief at 50% for businesses with a Rateable Value (RV) of under £6,000, declining on a sliding scale to 0% relief at RV £12,000.
Businesses occupying more than one property are eligible for relief only if their "main" property has an RV under £12,000 and all their other properties are under RV £2,600 and the aggregate of all hereditaments occupied is under £18,000 (under £25,500 in London) - but note that the relief applies to the main property only.
The Scheme is funded by the un-phased Small Business Relief Supplement which is payable by medium and large businesses and by ratepayer occupiers or owners of premises with a Rateable Value of over £17,999 (£25,499 in London).
The Chancellor has confirmed that the Government will fund a temporary increase in the level of small business rate relief, so that eligible small businesses occupying properties with rateable values up to £6,000 will pay no business rates for one year from October 2010 and those occupying properties with rateable values between £6,000 and £12,000 will benefit from relief on a sliding percentage scale from 100% at rateable value £6,000 to 0% at rateable value £12,000
To view further details follow the link below.