Ask the Expert - Rating
Every month, Insider invites readers of its daily newsletter to submit their questions about commercial property to top professionals in the Yorkshire region.
Steve Bliss, the Valuation Office Agency's revaluation project manager, has been answering your questions about rating.
All answers are for general guidance only. Each case must be handled on the individual facts.
Q: I would like to instruct a rating agent to assist with an intended challenge to the rateable value of my premises. What accreditation should I look for in any agent I instruct and what are the benefits of a professionally aided challenge?
A: “We would advise ratepayers to contact the VOA for a discussion in the first instance. A quick telephone call to your local office is sometimes all that is needed to resolve your concerns. The VOA sets out rating information in clear and easy to follow steps in all its communications material to allow people to resolve rating concerns at no cost to themselves.
“However, if you decide to employ a rating agent, you should ensure they are a member of a professional body like the RICS, the IRRV or the Rating Surveyors Association. Be wary of cold callers. You should also ask for a clear breakdown of the fees you will be expected to pay and check the details of any contract or agreement you are asked to sign.
“An agent can help you understand your rateable value, check the details it is based on and make sure it is consistent with others. This can also be done on the VOA's website www.voa.gov.uk, where further guidance on choosing an agent is available as well.”
Q: I have taken over a property but only occupy part of it; can I have a reduced rate?
A: “In general, if you occupy any part of a business property, you will be liable for business rates for the whole premises. However if a part of a property is completely unused, it is possible to give the occupied and empty parts separate rateable values. This is only possible if the unused part can be separately occupied, is completely empty and there are no plans to use it in the future.
“Rates are payable on empty property, but at the moment empty properties with a rateable value below £18,000 will not have to pay any rates until 31 March 2011. In other cases no rates are paid for the first three months a shop is empty (6 months for industrial property). This can be a complicated area and ratepayers should in the first instance contact the Valuation Office or their local council.”
Q: My business premises are subject to a transitional arrangement. What does this mean and why do we have them?
A: “Transitional arrangements are put in place to phase in changes to your rates bill as a result of the revaluation, which takes place every five years. The latest revaluation of business rates came in to effect on 1 April 2010; all new rateable values are based on rental values as at 1 April 2008.
“If your 2010 rateable value is below £18,000 (£25,500 in London), your rates bill for this year, excluding any other form of rate relief you may receive, should not have increased by more than 5%. If your rateable value is £18,000 or above, your rates bill should not have increased by more than 12.5%. Transition is worked out by your local council when they produce your bill.”
Q: How can I reduce my business rates liability?
A: “The VOA ensures that all valuations are accurate by gathering as much information as possible from a variety of sources. It is important as we get it right, as rateable values are the basis for the rates bill produced by your local council.
“However, you should check the details of your valuation on our website www.voa.gov.uk and contact us if you find a discrepancy in the factual details that we hold of your property. You should also confirm that the rateable value for your property reflects the rental value as at 1 April 2008.
“If there are any errors, we will put it right. Finally, check with your local council whether you are eligible for any form of rate relief, such as small business rate relief - this type of relief must be claimed, but a number of businesses do not do so.”
