Many occupiers of business properties will have had the standard leaflet with the new non-domestic rates demand giving details of the revaluation that is taking place and which will result in there being new rateable values from the 1st April 2017.

It is not just a matter of accepting the new rateable values but to check to see if they are correct.

The revaluation is the first one that has taken place since 2010 and at that time rateable values were set based on rental values appropriate at the 1st April 2008.

In 2008 the property market had peaked and in our experience many rateable values were based as always on rating returns that had been sent out by the Valuation Office to give them evidence of rents which were passing at the due date. 2008 was at the peak of the property market where high rents were achieved.

Since then there has been a dramatic decline in rental values most noted in both town centre shop rents and offices. In both these sectors there has been a gradual decline over the last 5 years such that many shops even at lower rents have remained unoccupied and in the case of some offices there was no demand such that former office accommodation has now been converted into flats.

It will be interesting to see the way that the Valuation Office has interpreted these changes in the market and reflected rental values that applied as at 1st April 2015. This is the date at which the Valuation Office has applied rateable values.

It is however important to note that the Valuation Office are relying on rental returns that they have sent out and also land registry records but these are not the same as may have been achieved in the open market.

It is important to try and register on the Valuation Office website www.gov.uk/voa/revaluation. From October 2016 it will be possible to check your draft rateable value and if you consider that either the measurements they have used or the basis on which they have revalued your property for non-domestic rates is incorrect it would be sensible to contact them pointing out any errors Once the new list takes effect from the 1st April 2017 it is then possible to object to any rateable values remembering that it should be based upon the value as at 1st April 2015. Once appeals have been lodged and heard the tone of the list may well change providing that enough appeals are successful and further amendments to the list may then be made but only once an appeal is lodged.

There are a number of reliefs available including those for unoccupied property; those partly occupied and also small business reliefs can apply. Charity and community amateur sports clubs may also be entitled to relief and local authorities do have a general power to grant discretionary local discounts. 

The procedure for placing an appeal can be done by the rate payer and they do not have to be represented by a professional but it is often the case that members of the Royal Institute of Chartered Surveyors and the Institute of Revenues Rating and Valuation may have evidence which would assist in an appeal being successful but you should first check to see what costs are likely to be involved by employing a professional. When a new valuation list is issued it is also the case that some companies will offer advice but make sure that anyone that you employ is a recognised professional specializing in rating valuation and not just a company charging fees without having the necessary expertise to advise you and handle your appeal.

John Andrews FRICS MARLA

Residential Sales & Lettings Department

Doolittle & Dalley