Every five years, all non-domestic properties are assessed and given new rateable values by the Valuation Office Agency for the purposes of calculating business rates. The next rating revaluation in England and Wales takes effect from 1 April 2010.

The Valuation Office Agency (England & Wales only) issued draft rating assessments and summary valuations to over 1.7m ratepayers during October 2009. All properties were valued as at 1 April 2008 but the new rateable values will be effective from 1 April 2010.

Business may feel the impact of the 2010 revaluation more acutely in a recession. Rateable values are based on historic rental values and substantially different circumstances can exist now when compared to 1 April 2008. You should also be aware that once the new rateable value of your property has been settled, it will be current for the next five years.

A further complication with the current revaluation is that new governing regulations have been introduced and therefore it is essential that you are properly advised throughout the process.

Although an appeal cannot be made against your new 2010 rateable value until after 1 April 2010, there are significant savings available in the event that an appeal is made after that date and is successful. In addition, transitional relief may be available to you if you face a large increase in your business rates. 

What should you do now? 
It may be that the 2010 rateable value of your property has been assessed incorrectly and/or that you are eligible for transitional relief. In addition, it is still possible to appeal your 2005 rateable value and apply for a rate refund but you will need to act quickly. Please contact Gail Marshall on 0191 227 6726 or gail.marshall@hay-kilner.co.uk for further assistance or advice.

Please note:
This article is not legal advice; it is intended to provide information of general interest about current legal issues. Please contact us to discuss how the contents of the article may affect you.