Business Rates - Revaluation 2010

Business Rates are often a grey area when it comes to property management. This article seeks to explain and clarify how business rates are calculated and the implications of the revaluation in 2010.

Revaluation

• These have taken place every five years since 1990.
• The purpose of a revaluation is to keep the business rates system fair and up-to-date.
• The Valuation Office Agency (VOA) announced that '60% of business properties will see a reduction in their rates bill following this revaluation.

Often due to a lack of understanding, many property owners or occupants understandably get very nervous around the time of a revaluation. It is important to realise that an increase in the rateable value as a result of a revaluation does not necessarily mean an increase in the business rates you will actually pay.

Calculation

Business Rates are made up of two elements:

• A Rateable Value.
• A Multiplier (uniform business rate).

The VOA has produced a simple example:

Rateable Value - broadly speaking 'is the annual rental value that a property could be let for on a common valuation date'. The valuation date for this year was 1st April 2008.

Multiplier - sometimes referred to as the 'rate in the pound'. This determines how much is payable in business rates for each £ of rateable value.

Reliefs - There are also certain reliefs which one can apply for, should these be relevant such as small business rates relief and transitional relief, this can reduce payment by up to 50%.

If you would like further details or any advice on this and how it may affect you and your farm, or would like us to make representations for and on your behalf please do not hesitate to contact Joshua at Samuel & Son on 01435 864020.