The rateable value of your property is shown on the front of your demand and is used to calculate your rate liability. The value is assessed by the Valuation Office Agency, which is an agency of HM Revenue and Customs.
A property's rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date.
- Until 31 March 2017, the rateable values will be based on a valuation date of 1 April 2008.
- From 1 April 2017, the rateable values will be based on the valuation date of 1 April 2015.
The rateable values of business properties are subject to regular updating normally every five years, this is known as revaluation. All rateable values are reassessed at a general revaluation to ensure bills paid by any one ratepayer reflect changes over time in the annual rental value of their property relative to others.
The latest revaluation comes into effect on 1 April 2017 and updated rateable values to reflect the market as at 1 April 2015. The date is fixed two years before the date that valuations become effective to ensure that information to support the valuation process is available. To ensure fairness and consistency, the same fixed valuation date is used for all properties.
In the year of revaluation the multipliers are adjusted by the government to ensure the overall national rates bill will remain approximately the same.
Further information can be found using the 'related links' area of this page.
Your demand may increase, decrease, or stay the same, as a result of revaluation, depending on how the rental value of your property relates to national averages. For those affected by the revaluation, a Transitional Adjustment scheme will limit significant changes to rates bill, phasing them in over time. This may only apply in England.
2017/2022 transition scheme
From the 1st April 2017 the government have put into place a transitional relief scheme to limit and phase in changes in rate bills as a result of the 2017 revaluation. 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 rate demand. If you require further information please contact the business rates team on 0151 934 4360 or email firstname.lastname@example.org .
The limits on increases and decreases before inflation are as follows:-
|Limits on decreases|
|Limits on increases|
Large is defined as properties where the rateable value as at 1st April 2017 is more than £100,000
Medium is defined as properties where the rateable value as at 1st April is more than £20,000 and less than or equal to £100,000
Small is defined as properties where the rateable value as at 1st April RV less than or equal to £20,000
In addition each bill will increase each year in line with inflation and will include a supplement if not receiving Small Business Rate Relief.
Inflation factor for 2017/2018 is 1.02
Inflation factor for 2018/2019 is 1.03
Inflation factor for 2019/2020 is 1.023
Inflation factor for 2020/2021 is 1.016
Further guidance on the 2017 transitional relief and examples of calculations can be found in the 'downloads' section of this page.
Transition scheme 1st April 2015 – 31st March 2017
Due to the postponement of the revaluation until 2017 the government announced in the December 2014 Autumn Statement the extension to the 2010 transitional relief scheme for two years for properties with a rateable value up to and including £50,000.
The effect of this scheme was to:
- Limit demand increases on small properties below £18,000 rateable value facing increases above 15%
- Limits demand increases on medium sized properties up to £50,000 rateable facing increases above 25%
This scheme applies to transitional relief only; that is those moving to higher demands.
The extension of transitional relief into 2015/16 and 2016/17 is calculated after all other reliefs.
2010/2015 transition scheme
For 2010 / 2015 the caps on rate demands experiencing an increase were as follows:
|Small properties £17,999 RV & lower||5%||7.5%||10%||15%||15%|
|Large properties £18,000 RV & higher||12.5%||17.5%||20%||25%||25%|
The caps on rate demands experiencing a decrease are as follows:
|Small properties £17,999 RV & lower||20%||30%||35%||55%||55%|
|Large properties £18,000 RV & higher||4.6%||6.7%||7%||13%||13%|
Along with the percentage increase or reduction of the demand, an adjustment will be made for inflation. The inflation figure for 2020/2021 is 1.016%.
There is a new business rates appeal process in England from 1 April 2017 known as check, challenge, appeal. The Valuation Office Agency (VOA) deals with checks and challenges, while the independent Valuation Tribunal for England handles appeals.
The process is:
- Check: you must check and agree the property details against the information on the Valuation Office Agency website and raise any discrepancies with the Valuation Office Agency.
- Challenge: If you don’t agree with the check decision you have 4 months to register your challenge to the rateable value of your property and provide the VOA with your grounds for the challenge.
- Appeal: If you want to appeal the decision you will have 4 months to appeal.
All appeals must be made to the Valuation Office Agency, further information on how to appeal can be found by using the 'related links' area of this page.
You cannot withhold any payment pending the outcome of an appeal. Legally the Council must bill you based on the rateable value that the Rating List shows at the time. You are legally obliged to pay in accordance with the demand sent to you.
The Valuation Officer can backdate amendments to the rateable value. Where this results in you having paid too much we will automatically refund any overpayment you have made. In addition you are entitled to statutory interest on that overpayment. The Government sets the rate of interest payable each year.
If you do not pay as demanded, and we have to enforce payment, you could forfeit the right to receive interest on any subsequent overpayment.
What happens when my rateable value changes?
When your appeal has been dealt with, the Valuation Office will formally notify us of the amendment to be made. We cannot recalculate your liability until we receive that notification. However, under normal circumstances we will make any changes to your demand within 14 days of receiving notification from the Valuation Office.
Some important advice on combating 'cowboy' Business Rate advisors. Any advice you may be given by the organisations listed is independent of Sefton Council.
Rating advisors may cold call you to offer big savings in your Business Rates bills.
These operators are unlikely to be professionally qualified and often make fraudulent promises to secure large reductions in your rates bill so as to obtain early payments from you of up to several hundred pounds. Once you have paid them, you are unlikely to be able to seek redress, except through the courts. An ill-considered appeal could even increase your bill.
Here are some ways to check out a company:
- Check the firm and the individuals with the professional bodies listed below
- Ask for the names and telephone numbers of past clients and ring them to check
- Demand to see a copy of their contract and whether it entitles the firm to a percentage of the reduction in Rateable Value as this may not necessarily lead to a saving in the rates you have to pay
Free advice can be obtained from the Royal Institute of Chartered Surveyors Helpline listed below.
Some contracts contain disguised fees. You may be told that you will have to pay when the Valuation Office acknowledges receipt of an appeal. Not only can you lodge an appeal yourself, but the Valuation Office acknowledges receipt of all appeals free of charge.
Professional advice from qualified rating surveyors is available from members of the Royal Institution of Chartered Surveyors (RICS) or the Institute of Revenues, Rating and Valuation (IRRV).
The members of RICS or IRRV are:
- Regulated by rules of professional conduct offering redress to the general public
- Fully trained and qualified to standards required by their professional body
- Required to hold professional indemnity insurance
If you choose a rating advisor who is not a member of one of these bodies, you should satisfy yourself that the advisor has the necessary knowledge and expertise, as well as appropriate indemnity insurance. Ratepayers with any concerns about a rating advisor should consult the RICS or IRRV before entering into any formal agreement to engage a rating advisor to act on their behalf.
The Royal Institution of Chartered Surveyors
North West Regional Office
Telephone: 01925 852 644
Institute of Revenues, Rating and Valuation
5th Floor, Northumberland House
303-36 High Holborn
Telephone: 0207 831 3505
|Transition Explantory Notes 2018||(pdf 233KB)|