Commercial - 2005 Rating Revaluation

New revaluation – what is it?

All non-domestic property in England and Wales has been subject to a revaluation with effect from April 1, 2005.

Statistics from the Valuation Office Agency (VOA) have shown an overall increase in rateable value in England of 18% compared to 16% under the previous revaluation in 2000.

The largest increases in rateable value have been experienced on those properties, in particular shops and retail warehouses, which have experienced greatest rental growth between 1998 and 2003. Your local Cluttons’ contact can provide you with more information on specific property sectors and regions.

Uniform business rates

You will have recently received your rate demand which is based on a rating multiplier for 2005/6 of 42.2p in the pound. This accounts for an additional supplement of 1.6% to pay for the small business relief. Those who qualify for small business relief will pay the small business non-domestic rating multiplier of 41.5p in the pound.

In addition, rate bills may be adjusted to take account of any reliefs and exemptions as appropriate and a more generous scheme of transitional adjustment.

Transitional arrangements

The transitional arrangements which may affect your bill phase in the effects of significant changes in liability which have arisen from the 2005 rating revaluation.

The government has chosen a transitional scheme which will be self-financing. Those ratepayers facing large increases in bills will have their relief funded by limits on the reduction for those whose bills should fall.

The key points of the transitional scheme are that it should work through the life of the rating list and in the fifth year no property’s liabilities will be subject to transition.

If you require advice in relation to the effect of a transitional scheme upon your liability to rates, please contact your local Cluttons’ contact who can provide further details.

Your assessment

Your new rateable value upon which your rate liability is calculated represents the notional rental value of your property as at April 1, 2003. However, any subsequent changes to your property or location should be taken into account as at April 1, 2005.

It is unlikely that the Valuation Office Agency responsible for carrying out the revaluation had the resources to monitor any changes which might have occurred since they carried out their initial valuation. In view of this and the uncertain market conditions of the new valuation date ratepayers can expect a fair degree of success in reducing their rating assessments which might be achieved through formal appeal action.

How do I appeal against my new assessment?

Ratepayers are advised by the VOA to take professional advice in relation to their new assessments. Cluttons have a proven track record of successfully appealing against rating assessments on their client’s behalf and offer a free rating audit. Furthermore, if it is decided that an appeal is worthwhile, Cluttons will normally work on a no win no fee basis.

For further information please contact your regional rating partner listed below:

 

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