The Valuation Office Agency gives a rateable value to each non-domestic property and this is used by local councils to calculate a property’s business rates.
A property’s rateable value represents the rent the property could have been let for on a certain date set in law. It may not be the actual rent paid on this date as the law makes a number of assumptions (such as the property being vacant, to let and in reasonable repair, and that the rent excludes any other charges, taxes or insurance). The rateable value is not the amount you pay, but it is used by local councils to calculate your business rates bill.
A revaluation of Business Rates should take place by the Valuation Office Agency every five years. There was a revaluation due to happen in 2015; however legislation was passed to postpone this until 2017.
Why is a revaluation required?
The key purpose of revaluation is to update Rateable Values of Non-Domestic properties to reflect more up to date rental levels.
This provides for a closer, fairer link between property values and the amount of rates paid by individual ratepayers
Business rates are a tax on any property that is not used for domestic purposes.