Premises that are subject to business rates are given a rateable value by the Valuation Office Agency (VOA). Local authorities use the VOA's assessment of a property's rateable value to calculate business rates bills. The rateable value is based on the likely annual open market rent for the premises at a particular date. The details of each premises, including a brief description and the rateable value, are held in what is called a local rating list. For composite properties, which are partly domestic and partly non-domestic, the rateable value relates to the non-domestic part only.
Rateable values are reviewed every five years - this is called a revaluation. They were last updated in England and Wales on 1 April 2010, based on market rents at 1 April 2008. Find more information about the revaluation on the Valuation Office Agency website.
Properties that have been altered since the last revaluation may be reassessed by the VOA and the local authority's Business Rates Team amends the details in the local rating list accordingly. For example, a property may have been physically extended or have undergone a change of use requiring the local rating list to be amended.
To assess the rateable value, factors such as the size of the premises and how they are used are taken into account. Different parts of the premises may be valued at different levels. For example, the front part of a shop, nearest the entrance, is more valuable than space further back or storage space in the basement.
Details of the rateable value, and how it has been calculated, are shown on a summary valuation for the property. Find the current rateable value of a property in England or Wales and view the summary valuation on the Valuation Office Agency website.
A copy of the local rating list is also available to view at:
- Valuation Office Agency, Government Buildings, Castle Street, Merthyr Tydfil, CF47 8TX.
- Caerphilly County Borough Council, Penallta House, Tredomen Park, Ystrad Mynach, Hengoed. CF82 7PG
In Wales, the business rates you are charged are calculated using the rateable value and the multiplier (or Uniform Business Rate (UBR)) set by the Welsh Government. To calculate business rates, the rateable value is factored with the multiplier. For example, if the multiplier is 45.2 pence, then for every pound of rateable value, 45.2 pence is payable in business rates. Note that the rateable value is given in pounds while the multiplier is given in pence.
For the financial year starting on 1 April 2012, the multiplier has been set at 45.2 pence. If the rateable value of your property was £10,000, your local authority would multiply it by 45.2p to get a total of gross rates payable for the year of £4,520. If you are entitled to any form of rate relief or exemption, this sum is then adjusted to reflect that, giving a net amount payable for your rates bill. The multiplier usually changes each year in line with inflation.
What to do if you think your rateable value is wrong
Should you disagree with the rateable value of your property you may appeal to the VOA, subject to certain time limits, for one of the following reasons:
- The initial rateable value shown in the rating list is wrong, in your opinion.
- The rateable value is inaccurate by reason of a material change in the property. For example, part of the property has been demolished; you have enlarged the property; there has been a change in its use; a physical change in the locality or a change in the use of a neighbouring property.
- The VOA has amended the rateable value entered in the local rating list and you think the new value is wrong.
- There is an error in your property's entry in the rating list e.g. the description is wrong.
- Your property is shown in the list but ought not to be shown e.g. agricultural building.
- You believe a decision of the Valuation Tribunal or higher Court has a bearing on the rateable value of your property
In certain circumstances, your appeal will be passed to the Valuation Tribunal for their consideration.
Please note: payment of business rates cannot be withheld or refused pending an appeal against the rateable value of a property.
If you have any further queries or wish to appeal against the rateable value of your property, go to the Valuation Office Agency website or contact:
Chief Valuer Wales & Valuation Officer
Non-Domestic Rates Wales
Valuation Office Agency
Ty Glas Road
Tel: 03000 505 505