Last week saw the unveiling of the draft list of rateable values for the Government’s 2017 Rating Revaluation, which takes effect from 1 April 2017. All commercial properties are to have their rateable values re-assessed, based on rental levels at 1 April 2015, and it is these that will be used to calculate liabilities for the next five years.
Lee Halmshaw, Associate at Bilfinger GVA in Bristol comments, “This is long awaited, being seven years since non-domestic properties in England and Wales were nationally revalued.
“The publication of the draft list will provide the first opportunity to understand how the Valuation Office has responded to the challenge of the revaluation. Whether a business’s assessment has increased or decreased, it is important to question whether it’s a fair reflection of the rental market as of 1 April 2015.
“Over the next six months businesses need to be checking their rateable values and informing the VOA of any factual errors. Appeals can be lodged once the new rating list is published next April.”
The Government’s revaluation includes a new process for the appeals system in England, introducing a fundamental change to the way rating appeals are heard. It introduces three distinct stages and places far more onus on the ratepayer to provide more detailed information about their property at the outset.
The Check, Challenge, Appeal process starts with the ratepayer or its agent confirming the floor areas, rent and specification of the property. The Valuation Officer (VO) reviews these facts and, if appropriate, amends the rateable value. If the ratepayer still disagrees with the rateable value there will be a statutory right to proceed to the Challenge stage after 12 months, although the Government anticipates this timescale will be much shorter in practice.
Following the conclusion of the Check stage the ratepayer has four months to formally challenge the Valuation Officer’s rateable value. The ratepayer must provide full supporting information, their valuation, comparable evidence and detailed reasons why the rateable value is wrong. Negotiations should take place before the VO issues its formal response. This stage could take up to 18 months and if an agreement cannot be reached the case is escalated to the Appeal stage.
The ratepayer then has four months to submit an appeal to the Valuation Tribunal. No further negotiations take place and only in exceptional circumstances can new evidence be introduced.
