Think your new business rates valuation is inaccurate? John Webber, from Colliers, explains the next steps businesses need to take
The 2023 draft rating list has finally been published. Given that the valuation date for the 2023 Rating List was 1 April 2021 when we were still in the midst of Covid-19, many ratepayers would have been expecting a significant reduction in their rateable value (RV) compared to the existing 2017 RV.
Unfortunately, many will be disappointed when logging onto the Valuation Office Agency’s (VOA) website to check their draft rateable values. The government outlawed 400,000 appeals on the 2017 Rating List on the basis that the effect of Covid-19 would be reflected in the 2023 Rating List. Was anyone so naive to think that was actually going to happen?
The chief valuer, Alan Colston, in a recent blog stated: “I know many ratepayers will want to know how Covid-19 has been reflected in their valuation. Ministers chose 1 April 2021 as the date we based our valuations on for this reason. It means our valuations will reflect the impact Covid-19 had on rental values at that time.”
So, what should you do if you think that figure is too high?
Firstly, you need to decide if you are happy that your 2017 rating list entry is correct. The number of appeals made against rateable values in the 2017 list is at a record low, mainly because of the complicated new appeal system introduced in April 2017, known as ‘Check, Challenge, Appeal’ (CCA), and two years’ worth of covid reliefs for many sectors .
However, 2017 is still up for grabs, so at the very least please check that the physical details of your property are correct. For example, do they have the correct floor area? Any factual changes that are identified now should then be followed through to the 2023 rateable value.
And what about the 2023 draft figures? In defence of the VOA, it had a difficult task when assessing properties. After all, evidence was thin on the ground in April 2021. But if you think the values do not reflect the trading situation around April 2021, or the rent you were paying your landlord because of concessions or renegotiated terms, then please send an enquiry to the VOA or ask your agent to contact them now.
They will require evidence on turnover (or lack of it) and rental agreements. For these obvious errors there is a small window before the list is completely locked down. The billing authorities will start issuing rate bills to businesses from February onwards next year.
Once we arrive at 1 April 2023, the rating list becomes live and the formal CCA process can begin against 2023 rateable values in England and Wales. Ratepayers will have to log into their business rates account or register and ‘claim’ their properties if an account has not previously been set up to begin the CCA process. Details of how to do this can be found here.
Unfortunately, if not resolved at the initial ‘check’ stage, the time to deal with the whole process can take as long as three years. So, it is important to start this process as early as possible. We are urging our clients to take appropriate action now.
John Webber is head of business rates at Colliers
