“Those who appreciate that a property’s Rateable Value is related to its rental value may be thinking that the recent economic turmoil and falling property values will mean that they will have to pay less rates in the future but they may well be disappointed”, warned Paul Russell, Head of Professional Services at Goadsby.
Current Rateable Values derived from the 2005 Revaluation. The Valuation Office is now finalising what will be known as the 2010 Revaluation, although in fact it will be published on the 30 September 2009. This exercise means that a new tax code will be ascribed to all commercial properties and to this Rateable Value a multiplier will be applied giving the amount of Rates payable. Clearly the lower the Rateable Value the lower the rates payable.
The Rateable Value is an indication of what the Valuation Office considers the property would let for. Although it is called the 2010 Revaluation the valuation date is 1 April 2008 - which was before much of the fall in commercial property values. This means that those areas most severely hit by the recession will be struggling with higher Rateable Values than might have been the case had the Revaluation date been 1 April 2009 or indeed 2010.
Although the Valuation Office does its best to produce the List as accurately as possible there may well be errors or points which need to be discussed and negotiated.
In the 6 months between the 30 September 2009 and the 1 April 2010 there is an opportunity to check the assessment placed on the property and see whether or not it is correct. Goadsby will be doing this for a number of its Clients and seeking to ensure that the Rateable Values ascribed to their properties are not higher than they should be.
In any event the Local Authority will be using the new Rateable Values to calculate the Business Rates bill for the 2010/2011 Financial Year.
“It is important to make sure that the Rateable Value for your property is correct as it is in effect the tax code which will be used for a period of at least 5 years before the next Revaluation currently intended to take place on the 1 April 2015”, commented Paul Russell.