What are Business Rates?
Business Rates is a local tax that is paid by the occupiers of all non- domestic properties.
Business Rates are charged on most business properties such as shops, offices, pubs, warehouses and factories. However, the property doesn't have to be used for a business - if it is used for purposes which are not domestic it is likely to be rateable.
Roles and responsibilities?
The Valuation Office Agency (VOA) set the rateable value of all business premises by using property details such as rental information.
We use the rateable value and the business rate multipliers (set by central government) to calculate your bill.
What is the Rateable Value?
The rateable value is assessed by the VOA, which is an agency of HM Revenue and Customs (HMRC),
A property's rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date
- Until 31 March 2017, the rateable values will be based on a valuation date of 1 April 2008.
- From 1 April 2017, the rateable values will be based on the valuation date of 1 April 2015.
If you think your rateable value is incorrect, you can find and view your property details on the VOA website.
What is a revaluation?
The VOA regularly reassess and updates the rateable value of all commercial properties usually every five years. This is called Revaluation and is done to maintain fairness in the system by redistributing the total amount payable, reflecting any changes in the property market. Revaluation does not raise extra revenue overall.
As of 1 April 2017 all business rates in England have been revalued. The result of this means that some businesses will pay more and some will pay less from 1 April. In order to limit and phase in changes in rates bills following a revaluation, the Government have introduced a Transitional relief scheme which limits how much business rates change following revaluation. Transition will be applied when the Rateable Value goes up or down by more than a certain percentage. If the Rateable value goes up over a certain limit transitional relief will be automatically applied and gradually phased out over 5 years. To help pay for these limits on increases in bills there are also limits on reductions in bills. If a Rateable Value goes down by more than a certain limit Transitional surcharge will be applied and gradually phased out over 5 years. This scheme only applies to the property at the time of revaluation - any changes to the property after the 1 April 2017 will not normally be subject to transition.
You do not need to apply for Transition. Any adjustments are made automatically and are shown on the front of your bill. More information on revaluation can be found at www.gov.uk/introduction-to-business-rates.
How can I find out more?
For more information on the 2017 Revaluation, rateable values and business rates go to www.gov.uk/voa/revaluation.
To view a copy of the Draft List for the Melton Borough area, click here.
If you require professional help querying your rateable value, you could get help from a qualified rating surveyor through one of the following organisations:
- Royal Institute of Chartered Surveyors
- Institute of Revenues, Rating and Valuation
- Rating Surveyors Association
What do I need to do?
Register your email address at www.gov.uk/voa/revaluation. The VOA will contact you by email when your draft rateable value is available online.
In October 2016, go online to view your draft rateable value and check the details the VOA hold about your property.
If the details are incorrect, you should update them. This can be done by visiting www.gov.uk/correct-your-business-rates.