Welcome to the Knight Frank comprehensive rates liability guide.
Welcome to the Knight Frank comprehensive rates liability guide.
The aim of this document is to provide ratepayers with a detailed breakdown of all the relevant facts and figures needed to accurately calculate their rate charges based on the 2023 Rating List. The 2023 Rating List came into force on 1st April 2023 and currently is set to run for a period of 3 Rating Year and is anticipated to close on 31st March 2026. The 2017 Rating List which was effective from 1st April 2017 will close with effect form 31st March 2023. After this date Ratepayers will not be able to challenge any 2017 Rateable Value (except in very exceptional circumstances.). The 2023 Rating see the continuation of the of the Check, Challenge and Appeal (CCA) Process. This is the 3-step process that was introduced in April 2017 which allows ratepayers to challenge and appeal their rateable value. With effect from 1st April 2023, Check Challenge and Appeal will be introduced in Wales and the process will mirror what has been in place in England since 2017. Further details can be found on the Valuation Office Agency website. In England the other major change in the 2023 Valuation List is the introduction of New Obligations and Penalties for Ratepayers. These obligations will be in the form of a Duty to Notify the Valuation Office of any changes, and a requirement to complete an Annual Confirmation of VOA records. Further details of the proposed obligations are outlined within the guidance provided for England. Although the overall amount collected through Business Rates remains largely the same after a revaluation. The rates charged on individual businesses will vary significantly depending on changes to their Rateable Value (RV). It is important to understand that an RV is the Valuation Office Agency’s estimate of the annual rental value of the property as at a statutorily fixed valuation date.
This date is always fixed two years before the list commences and the 2023 valuation list antecedent date for England and Wales is 1st April 2021. The Scottish Government has set the ‘tone date’ for the 2023 Revaluation as 1st April 2022 one year prior to the Revaluation itself (rather than the normal two years). The last time properties were revalued was April 2015 and it is the change in the property market and the economic climate over 6 years which has caused the significant changes in rateable values and Business Rates payments.
USING THIS GUIDE
In order to fully benefit from this guide, ratepayers will need to know their current RV. This can be found on any rate demand or on the Valuation Office Agency (VOA) website (www.voa.gov.uk). By applying the relevant adjusted Uniform Business Rate (UBR) multiplier to the respective RV, the initial liability can be established.
Ratepayers can then use the information contained in this guide to check if they have entitlement to any reliefs or exemptions. Once these are applied, the chargeable amount will be calculated for the year. In certain cases, the above calculations may result in a different amount from that demanded, this would mainly occur when the property is subject to the transitional relief provisions. If this is the case, then the phasing limits on changes in liability can be found in this guide for England, Scotland and Wales.
FURTHER INFORMATION
Business Rates are subject to regular legislative review. This guide is limited to the information currently available. This edition was published in Q3 (2024/25 rating year). To ensure ratepayers are kept up to date, we would recommend subscribing to updates of this guide by using our website knightfrankrating.com or contact our Business Rates team.