The rateable value of your property is shown on the front of your demand and is used to calculate your rate liability. The value is assessed by the Valuation Office Agency, which is an agency of HM Revenue and Customs.
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.
- From 1 April 2017 to 31st March 2022, the rateable values will be based on the valuation date of 1 April 2015.
- From 1 April 2023, the rateable values will be based on the valuation date of 1 April 2021
The VOA is contacting businesses to request rental information to support the next revaluation of business rates in England and Wales – Revaluation 2023.
If you receive a request, please complete and submit your up-to-date details. It is important to provide this information to ensure business rates are fair and accurate. You can find more information at www.gov.uk/voa/revaluation2023
Your demand may increase, decrease, or stay the same, as a result of revaluation, depending on how the rental value of your property relates to national averages. For those affected by the revaluation, a Transitional Adjustment scheme will limit significant changes to rates bill, phasing them in over time. This may only apply in England.
Transitional Relief Scheme from 1 April 2023
From the 1 April 2023 the Government have put into place a transitional relief scheme to limit and phase in increases in rate bills as a result of the 2023 revaluation.
The scheme does not apply to those in downward transition to lower bills; they will fall to their full bill on 1 April 2023.
Transitional relief is applied automatically and is shown on the front of your rate demand. It will continue to apply until your bill reaches the full amount set by revaluation.
If your bill is increasing from 1 April 2023 as a result of revaluation, the increase will be limited to a certain percentage. The amount of this percentage will depend on your rateable value.
Table showing information if your bill is increasing from 1 April 2023
|
Rateable value |
2023 to 2024 |
2024 to 2025 |
2025 to 2026 |
|
Up to £20,000 |
5% |
10% plus inflation |
25% plus inflation |
|
£20,001 to £100,000 |
15% |
25% plus inflation |
40% plus inflation |
|
Over £100,000 |
30% |
40% plus inflation |
55% plus inflation |
Along with the percentage increase of the demand, an adjustment will be made for inflation, however in 2023/2024 there is no inflation figure.
There is a new business rates appeal process in England from 1 April 2017 known as check, challenge, appeal. The Valuation Office Agency (VOA) deals with checks and challenges, while the independent Valuation Tribunal for England handles appeals.
The process is:
- Check: you must check and agree the property details against the information on the Valuation Office Agency website and raise any discrepancies with the Valuation Office Agency.
- Challenge: If you don’t agree with the check decision you have 4 months to register your challenge to the rateable value of your property and provide the VOA with your grounds for the challenge.
- Appeal: If you want to appeal the decision you will have 4 months to appeal.
All appeals must be made to the Valuation Office Agency, further information on how to appeal can be found by using the 'related links' area of this page.
You cannot withhold any payment pending the outcome of an appeal. Legally the Council must bill you based on the rateable value that the Rating List shows at the time. You are legally obliged to pay in accordance with the demand sent to you.
The Valuation Officer can backdate amendments to the rateable value. Where this results in you having paid too much we will automatically refund any overpayment you have made. In addition you are entitled to statutory interest on that overpayment. The Government sets the rate of interest payable each year.
If you do not pay as demanded, and we have to enforce payment, you could forfeit the right to receive interest on any subsequent overpayment.
What happens when my rateable value changes?
When your appeal has been dealt with, the Valuation Office will formally notify us of the amendment to be made. We cannot recalculate your liability until we receive that notification. However, under normal circumstances we will make any changes to your demand within 14 days of receiving notification from the Valuation Office.
Some important advice on combating 'cowboy' Business Rate advisors. Any advice you may be given by the organisations listed is independent of Sefton Council.
Rating advisors may cold call you to offer big savings in your Business Rates bills.
These operators are unlikely to be professionally qualified and often make fraudulent promises to secure large reductions in your rates bill so as to obtain early payments from you of up to several hundred pounds. Once you have paid them, you are unlikely to be able to seek redress, except through the courts. An ill-considered appeal could even increase your bill.
Here are some ways to check out a company:
- Check the firm and the individuals with the professional bodies listed below
- Ask for the names and telephone numbers of past clients and ring them to check
- Demand to see a copy of their contract and whether it entitles the firm to a percentage of the reduction in Rateable Value as this may not necessarily lead to a saving in the rates you have to pay
Free advice can be obtained from the Royal Institute of Chartered Surveyors Helpline listed below.
Some contracts contain disguised fees. You may be told that you will have to pay when the Valuation Office acknowledges receipt of an appeal. Not only can you lodge an appeal yourself, but the Valuation Office acknowledges receipt of all appeals free of charge.
Professional advice from qualified rating surveyors is available from members of the Royal Institution of Chartered Surveyors (RICS) or the Institute of Revenues, Rating and Valuation (IRRV).
The members of RICS or IRRV are:
- Regulated by rules of professional conduct offering redress to the general public
- Fully trained and qualified to standards required by their professional body
- Required to hold professional indemnity insurance
If you choose a rating advisor who is not a member of one of these bodies, you should satisfy yourself that the advisor has the necessary knowledge and expertise, as well as appropriate indemnity insurance. Ratepayers with any concerns about a rating advisor should consult the RICS or IRRV before entering into any formal agreement to engage a rating advisor to act on their behalf.
The Royal Institution of Chartered Surveyors
North West Regional Office
Suite G04-G07
Chadwick House
Birchwood Park
Warrington
WA3 6AE
Telephone: 01925 852 644
Institute of Revenues, Rating and Valuation
5th Floor, Northumberland House
303-36 High Holborn
London
WC1V 7YZ
Telephone: 0207 831 3505
You contact the VOA at the related link above or you can go to www.gov.uk/contact-voa. If you are unable to use the online service you can also contact the VOA on 03000 501 501
Revaluation
What is revaluation?
Revaluation is a review of the rateable values of all non-domestic properties in England and Wales carried out by the Valuation Office Agency (VOA). This normally happens every 3 years.
Business rates
How do you value a property?
The VOA values a property by its rateable value. Rateable values are the amount of rent a property could have been let for on a set valuation date. For the 2023 revaluation, that date was 1 April 2021.
How is my rateable value calculated?
In order to calculate the rateable value, the VOA analyses the rental property market to ensure that rateable values reflect the property market accurately.
What is the valuation date for revaluation 2023?
The AVD for revaluation 2023 is 1 April 2021.
Who decides on the valuation date?
The Government decide on the valuation date. They chose 1 April 2021 so that valuations would reflect the impact of COVID-19 on the property market.
How is my business rates bill calculated?
Business rates bills are calculated using a rateable value. Rateable values are based on how much rent a customer’s property could be let for, on a set date (1 April 2021 for Revaluation 2023).
When will I receive my business rates bill?
Customers will now be able to see the future rateable value for their property and get an estimate of what their business rates bill may be from 1 April 2023.
They can do this through the VOA’s Find a Business Rates Valuation Service on GOV.UK.
Who do I contact if my property has changed?
If a property has changed, for example its floor sizes are different, then customers can let the VOA know now using a Business Rates Valuation Account.
Who do I contact if my rateable value is too high?
If a customer believes their future rateable value is too high, they can get in touch with the VOA using a Business Rates Valuation Account. They can only do this after 1 April 2023, which is the point the future valuation legally takes effect and can be challenged.
Customers must continue to make payments of their business rates as normal. If they do overpay, they can request a refund from their local council.
Why do similar properties have different rateable values?
When calculating a rateable value, the VOA considers how much a property could be let for, on a set date. The rateable value of properties can vary for a number of reasons like size or location.
What business rates reliefs are available?
There are several types of business rates relief for customers. They can find further information on GOV.UK. They may need to contact their local council to check their eligibility for business rates relief.
Business rates reliefs are handled differently if their property is in Scotland, Wales and Northern Ireland.
What if I want to use an agent?
If a customer wants to authorise an agent to act on their behalf, then they can appoint one using a Business Rates Valuation Account.