BUSINESS RATES REVALUATION

Business rates demands will soon be dropping through the letterboxes of all rates payers, based upon their property’s new rateable value that will come into effect in April 2005. It is important that ratepayers take action to ensure these new rating assessments are accurate in order to ensure their outgoings are kept to a minimum.

This is the first re-valuation since 2000 and rateable values in the Eastern region have risen on average over 20% according to the Office of the Deputy Prime Minister, with the highest increases on shops and retail warehouses.  Whilst values on some individual properties may have fallen in the five year period, it is still important to check the summary valuation provided by the Valuation Office, as errors do occur.

These errors can be factual, such as inaccurate floor areas or overstating the number of car spaces that you have.  More common though is too high a value being attributed to the floor areas.  The value is based upon rental values as at April 2003.  However, if there is a lack of good quality comparable evidence or full information on the material details of any transaction is not available, the Valuation Office will have relied more on their judgment which gives potential for inaccuracies.

Arnolds are one of the most active agents in the commercial property market in Norwich and Norfolk and therefore have first hand experience of a large number of transactions, and access to our large 'deals database' that took place at around the appropriate valuation date.  We can therefore offer first rate advice on the suitability of making an appeal, and securing reductions based upon our wide and detailed knowledge of the market.

Already, we have advised clients in respect of their new rateable values for the 2005 List.  In some instances, we have advised against an appeal due to beneficial errors made in the valuation.  Without detailed analysis, an appeal may have brought this to the Valuation Officers attention and resulted in a higher rates demand for our client.  However, in many cases, errors have been to the detriment of our client and we have advised appeals are made.

John Hadcroft, a Partner in our Commercial Department, is responsible for advising clients on rating matters.  He is a member of the Royal Institution of Chartered Surveyors, as well as the Institute of Revenues Rating and Valuation which represents practitioners in the valuation, administration and adjudication of business rate matters.  John will be pleased to advise you on your rateable value and provide more details on the service available and fee structure.

John Hadcroft MRICS
Commercial partner
March 2005-02-23

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