Business Rates and Appeals

Rates & Rating Revaluation 2005

Rates on all commercial property are in the spotlight again because of the year 2005 revaluation. They continue to form a large part of the occupational costs for any commercial property. Mass & Co successfully appealed against the 1990, 1995 and 2000 rating assessments on a number of clients' properties; preparations are already in hand regarding some entries in the 2005 list.

Rateable values are based on estimated market rental levels at a common date. These rateable values are revised every 5 years; the latest rating list, based on rents as at 1 April 2003, is effective from 1st April 2005. The Valuation Office is a government Agency which acts impartially in setting the list. This is then passed on to the Local Council who collect the rate based on a nationally set rate in the pound.

Appeals may be made against the rateable value figure at any time during the currency of the valuation list. Having lodged an appeal, local knowledge of relevant transactions becomes essential to successfully challenge the Valuation Officer's figures. We maintain records so that we can do this if appropriate. Appeals are now programmed by property type for discussion in pre-determined time slots; if unresolved they are referred to Valuation Tribunal but most can be settled by negotiation. Once a reduction is agreed, however, refunds will be paid, subject to certain limits particularly where transitional relief applies. In theory, the Valuation Office will alter similar properties nearby following an appeal on one, but their workload sometimes precludes or delays this and it is important not to assume that it will be done automatically.

Mass & Co will nearly always work on a 'no win, no fee' basis with no up-front charges and a fee based on an agreed percentage of any successful reduction. You should be very wary of companies offering large savings without knowledge of the property you occupy, and you need never pay any fee in advance.

To receive updates on rating please enter your details below or contact Christopher Stewart BSc FRICS.

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