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UK Budget 2010

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Argyle Street, Boston, Lincolnshire

£64,950

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Why has the rateable value of my business premises been recalculated?
The Government reassesses the rateable values for all non-domestic business rates on commercial buildings every five years.

Through this process they assess the rental values on commercial properties, which gives them the information they need for calculating the business rates liability on commercial premises. This process is known as the revaluation and the new revaluation in this instance took place on April 1. 

All business owners now, therefore, should have received a new rateable notice assessing the rateable values of their buildings.
How is the new rateable value worked out?

The revaluations are assessed by the district valuer, who works on behalf of the Government at the Valuation Office Agency and consists of a team of chartered surveyors who carry out valuations on commercial properties for this purpose.

The valuation team assesses the rental market by obtaining comparable rental evidence, both locally and nationally. Revaluations reflect changes in the property market and rental values. The valuation date from where the assessments have taken place is known as the antecedent date, which is April 2008.

Some rateable values will vary with some showing increases or decreases, with some remaining the same as before.

When the rateable values are calculated , the rates payable are assessed by a multiplier or uniform business rate (UBR) and for the year 2010-2011, the standard multiplier is 41.4p in pound in England and the small business multiplier is 40.7p in the pound. This is assessed by the Government every year.

The multiplier has actually gone down since 2009-2010. It was 48.5p in pound for the standard multiplier and 48.1p for the small business multiplier.

What should I do if the value has increased?
If the rateable values increase this obviously can have an adverse effect on business and will lead to increased costs.

It is, therefore, imperative that business owners make sure their rateable values are correct, establish whether they are eligible for any reductions and whether their rateable values are in line with the rental values. It is, therefore, advisable to take advice from an expert chartered surveyor who specialises in rateable values and appeals.

From experience, there is a concern that there are some bogus rateable value assessors in the market place who generally charge up-front fees and can sometimes disappear without any further action. In the process they make all sorts of false promises to reduce rateable values and falsely mislead business owners.

Pygott and Crone strongly advise against this and generally works on a no-win, no-fee basis. It is also crucial to take proper advice ,as rateable values can go up as well as down.

Is there any financial support available to me?
There are reliefs to rateable values available and these are known as transitional reliefs, available on rateable values on the largest increases in assessments.

In England, small businesses are entitled to business relief if they only occupy one business property with the rateable value being less than 18,000 for businesses other than in London, which is slightly higher. There are other reliefs available, depending on the rateable values that apply.

With certain premises, if the rateable value is below certain levels then small business multipliers can be applied as referred to above. With businesses looking to save and keep costs low, it is imperative that your rateable values are assessed correctly by a fully trained professional chartered surveyor.

CONTACT DETAILS:
For further information and for a free appraisal to give an initial assessment,
call Will Downing at Pygott and Crone on: (01522) 536777.

Or email him at:
wdowning@pygott-crone.com