Business rates revaluation
The Valuation Office Agency (VOA), an agency of Her Majesty's Revenues and Customs, set the rateable value (RV) for each non-domestic property.
The rateable value broadly represents the yearly rent that the property could have been let for on the open market on a particular date.
For the revaluation coming into effect on 1 April 2017, this date will be set as 1 April 2015.
The Valuation Office Agency recently revalued over 1.96m non-domestic properties in England and Wales and published the draft rateable values online on 30 September 2016.
Whilst the 2017 revaluation will not increase the amount of rates collected nationally, within this overall picture, over 7 out of 10 ratepayers will receive a reduction or no change in their bill and some ratepayers will see increases.
For those that would otherwise see significant increases in their rates liability, the Government has put in place a £3.6 billion transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation.
Limits on bill changes
To help pay for the limits on increases in bills, there also have to be limits on reductions in bills.
Under the transitional scheme, limits continue to apply to yearly increases and decreases until the full amount is due (rateable value times the appropriate multiplier).
The scheme applies only to the bill based on a property at the time of the revaluation. If there are any changes to the property after 1st April 2017, transitional arrangements will not normally apply to the part of a bill that relates to any increase in rateable value due to those changes.
Changes to your bill as a result of other reasons (such as changes to the amount of small business rate relief) are not covered by the transitional arrangements.
The transitional arrangements are applied automatically and are shown on the front of your bill.
Further information about transitional arrangements and other relief can be found online.
What you should do next
If you think your draft rateable value is wrong find out how to appeal it.
Please note: we cannot change your draft rateable value if you think it is wrong. If you have any queries please contact the Valuation Office Agency.