rating

Dowd & Company advise existing clients on their business rates.

Business rates are a tax on commercial property and are assessed by allocating each and every separate property with a rateable value (RV).

The rateable value is initially set by the government’s Valuation Office Agency (VOA).

The rateable value is then multiplied by what is called the uniform business rate (UBR), also known as the rate in the pound (£), which is an amount set by central Government each year. The local authority collect the rates payable and will calculate any rates relief or adjustments which have been decided by Government and which you may be entitled to.

The basic rating calculation is therefore:

Rateable Value (RV) x the uniform business rate (UBR) = Rates Payable (less any transitional reliefs that are applicable).

n.b. The Business Rate Supplement Act 2009 allows for the provisions of specific supplements to be added to business rates such as contributions towards London’s Crossrail or the regeneration of a specific area.

2005 Rating List

The rateable value came into effect on 1st April 2005 and is the Valuation Officer’s opinion of the open market rental value of your premises if they were assumed to be available to let on the open market as at 1st April 2003 (it takes approximately two years for all assessments for non-domestic properties to be calculated).

2010 Rating Revaluation

The new rating list with new rateable values is effective from 1st April 2010. As above, this is the Valuation Officer’s opinion of the open market rental value of your premises if they were assumed to be available to let on the open market as at 1st April 2008.

.................................................

Dowd & Company will check that the information the Valuation Office holds on a property is correct, including the ‘use’ of the property. We will also ascertain whether the floor areas that the Valuation Office have used are correct. For new clients we will not assume existing floor areas are correct but will carry out a full re-measurement.

We will then investigate whether the rent per sq ft is correct, based on the valuation date as above. There are numerous subtle but important considerations to take into account and not least of these are the physical circumstances and location of the property as at 1st April 2010.

The rates payable should be considered with equal weight as the rent you pay as both are substantial occupational costs. It is prudent to take professional advice and to ensure that whoever you use can demonstrate their ability to act in your best interests.