Business Rates

Rating Revaluation 2021

What are business rates and how will the revaluation affect your business?

The 2021 Rating Revaluation has been postponed as a result of the Covid-19 outbreak.

What are business rates?

Business rates are essentially the commercial equivalent of council tax.

A ratepayer will receive their business rates bill from their local council. The bill will be based on their property’s rateable value, which is set by the Valuation Office Agency, who are part of the Inland Revenue. The rateable value is determined by their estimate of the property’s rental value at a fixed valuation date, which is arrived at upon revaluation.

Find out more

What is a revaluation?

The Valuation Office Agency undertake revaluations to adjust the value of business rates and ensure they reflect the current rental values in the commercial property market.

Going forwards, a revaluation will take place every 3 years. The gap has recently been reduced from every 5 years, which will help limit significant changes in in rateable values.

What will be the impact of the 2021 revaluation be?

The 2021 revaluation will take effect from 1st April 2021 and be based on rental values as at 1st April 2019. This is because it takes 2 years to collect the information necessary to collate the list, which currently comprises of approximately 1.9 million properties around the UK.

The last revaluation took place in 2017, making this the shortest gap between revaluations that we’ve had.

As always, there will be ‘winners’ and ‘losers’ as a result of this revaluation. Whilst we don’t expect to see massive fluctuations in rateable values from the 2017 List, we do expect to see some decreases in the retail sector and increases in the logistics sector, which has experienced increasing rents across the UK.

It’s yet to be determined how Brexit will affect the revaluation, however the political instability during 2019 could cause issues with determining accurate rateable values.

Get in touch

Why use a rating advisor?

A Rating advisor will help a ratepayer plan for April 2021, including understanding options for rates relief that may apply to their business, and examining their options of appeal.

There are numerous rates reliefs available, and the reliefs are in many instances inter-linked and unique to the individual occupier. It is therefore important for ratepayers to seek advice to ensure they are receiving all that they are entitled to, in the same way as any individual or company would seek tax advice.

It is also important for ratepayers to have their business rates bills checked by a Rating advisor. The calculation shown on the bill is rarely wrong but the assumptions made by the Local Authority can be incorrect, giving rise excessive bills.

Appeal grounds range from incorrect floor areas, excessive values per square metre or a need to reflect property specific disadvantages, to physical changes to a property or its locality, a need to merge / split assessments or in some instances a need to reduce the value to £zero.

Key date - 1 April 2021

The next business revaluation will take effect from this date.

Key date - 1 April 2019

Rateable value is determined by the VOA's estimate of your property’s rental value on this date.

Key date - 13 March 2018

Chancellor Phillip Hammond announced that the next rating revaluation will be brought forward to 2021.