With the arrival of business rates bills in March, many commercial property owners and tenants have seen an increase in their business rates liabilities. However, some may not be aware that commercial properties can be incorrectly valued, leading to them overpaying on their business rates tax.
Anthony Hughes, Managing Director of business rates reduction specialist RVA Surveyors, said: “It is essential that business rates payers ensure that the rates bill they received was the correct one.”
The rateable value (RV) assigned to a property is determined by the Valuation Office Agency (VOA) and can be influenced by many factors, such as geographical location and industry type. However, the VOA may not always have the most up-to-date information, resulting in inaccurate valuations.
In England, the industrial sector has seen an overall average increase in RV of over 27%, while Wales has seen an increase of just over 12%. The retail sector may have seen some relief, with an overall -10% decrease; however this does not reflect individual properties.
Hughes continued: “Reviewing their assessments offers businesses the opportunity to plan, budget, and identify cost savings until the end of the 2023 revaluation.” He also added that some reliefs, such as RHL, have an expiration date and it is important that business rates payers review their liabilities to avoid being trapped into overpaying for the 2023 rating list, which is set to end on 31st March 2026.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.