Whilst this might sound like a long way off, the process which sits behind this is well and truly underway. But what is Revaluation and how might it affect your business, and your bottom line?
What is Revaluation?
Revaluation is the process undertaken by the Valuation Office Agency (VOA) to reassess the rateable value (RV) of your business premises.
Historically, Revaluation took place every five years, and in 2021 it was confirmed that Revaluation would, from 2023, take place every three years instead.
This was a welcome move because your RV is calculated based on rental values from a specific point in time.
If the market changes significantly between revaluation periods, this can result in substantial changes in your business rates liability.
This is something which is of particular concern ahead of Revaluation 2023, because your new RV will be calculated based on rental values from 1 April 2021.
Why is this important?
Well, thanks to the pandemic, the number of property transactions in the market since 1 April 2021 has been far fewer which means that your RV could be calculated based on a distinct lack of market evidence.
This could result in a new RV which is significantly different to that of your last.
This will be particularly true for industrial, logistics and manufacturing businesses based in industrial premises, as the booming market has resulted in unprecedented rental values.
What to do now
You may receive requests called ‘Forms of Return’ from the VOA for rental information. In some cases, the VOA may request information about changes you may have made to your property, which could affect the rental value.
However, come 1 April 2023, this will change as the Government intends to introduce an annual obligation on the ratepayer to notify the VOA of any changes they have made to their property. This might include the addition of mezzanines, extensions or even a change of use within the property.
To ensure your RV is calculated correctly, whilst making the most of the reliefs available to you, our expert business rates advisers can help.
We can help with everything from responding to VOA requests and advising on the financial impact of changes to your property, to challenging your new RV throughout the Check, Challenge & Appeal process.
Our support can start now and to avoid the many pitfalls of this complicated tax and the ensuing annual administrative burden of the Duty to Notify, contact our business rates team.