1 / 39

REVALUATION 2010 Make business rates your business

REVALUATION 2010 Make business rates your business. STEPHEN HUGHES TEAM LEADER – EXETER VOA SOUTH WEST GROUP Valuation Office Agency. What the VOA does. Central government Executive Agency Professional property valuations: 1.8 million non-domestic ‘rateable values’ for business rates

shauna
Download Presentation

REVALUATION 2010 Make business rates your business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. REVALUATION 2010Make business rates your business STEPHEN HUGHES TEAM LEADER – EXETER VOA SOUTH WEST GROUP Valuation Office Agency

  2. What the VOA does • Central government Executive Agency • Professional property valuations: • 1.8 million non-domestic ‘rateable values’ for business rates • 22 million domestic council tax bands • 153 local housing allowance zones • 75,437 (2008/09) fair rents for private rented sector tenants • Property valuations for HMRC tax purposes • Strategic asset management and energy performance certificates for the public sector

  3. Business rates – the basics • Tax paid on business premises and other non-domestic properties • Nationally pooled, then redistributed between local authorities in proportion to adult population • Funds contribute directly toward cost of local authority services • More information at: www.businesslink.gov.uk

  4. Business rates bill EXAMPLE This is set by the Valuation Office Agency This is set by the government rateable value £20,000 multiplier £0.414 This is calculated and collected by the council bill total £8,280 Business rates – who’s who • Valuation Office Agency • assesses rateable value • Communities & Local Government / Welsh Assembly Government • sets policy framework, rate reliefs and national multiplier • Local Authority • uses rateable value in calculation of rates liability, applies reliefs/discounts, issues bills and collects payments

  5. How do we value? • Rateable value is our assessment of the rental value on a set date • Gather and analyse rental evidence and property information to set rateable values • In some cases we use trading receipts to establish rateable value… • …in others we use building and land costs • Aim is always to establish rental value

  6. workshop area office Applying the rateable value • For offices and industrial properties, rent generally distributed across different parts of the property on £/m² basis

  7. A B C retail area office storage Shops are slightly different… • In a shop the front part is the most valuable – this becomes zone A • £/m² reduces across the retail area as you move further back from the front

  8. Revaluation 2010 • The five-yearly revaluation maintains fairness in the rating system by redistributing liabilities according to any differential movement in values that has occurred in the market over the five-year period • Has taken place regularly since 1990 1990 1995 2000 2005 2010

  9. Not about increasing taxes! • An increase in rateable value does not necessarily mean an increased rates bill • The national multiplier is the other key factor used by local authorities to calculate rate bills • Multiplier adjusted so that the total business rate stays the same, only allowing for inflation • In England the multiplier for 2010/11 will be 41.4p, down from 48.5p in 2009/10 • In Wales the multiplier for 2010/11 will be 40.9p, down from 48.9p in 2009/10

  10. Not about increasing taxes! • Some rates bills will rise and some will fall • Transitional relief will limit changes in individual bills • Small businesses will receive additional reliefs

  11. Hypothetically speaking… 2005 rateable value - £14,800 14,800 x 0.481 = £7,118 notional liability 2010 rateable value - £17,489 17,489 x 0.407 = £7,118 notional liability

  12. Revaluation 2010 – key dates • 1 April 2008: common valuation date • 29 May 2009: rateable values delivered to clients (CLG and the Welsh Assembly) • 30 Sept 2009: draft lists published online • October 2009: new valuations delivered to most ratepayers • Early 2010: local authorities issue rate bills using new valuations • 1 April 2010: lists published – new valuations effective

  13. 1 April 2008 values – why? • Date fixed two years in advance to ensure that information to support the valuation process is available • Common date ensures fairness and is the same for all ratepayers • Rental values in 2010 may be lower than they were in 2008 but: • new multiplier will be set • new rates bill will depend on how rateable values have changed relative to each other since the last revaluation, not on changes in the rental market between 2008 and 2010

  14. The effect on bills by region

  15. The effect on bills by region • This is before transition and other reliefs are taken into account • There will be variations within the region, based on local conditions and the type of property involved

  16. Overall change: 0% -1% KEY: -2% -10%- -6% -1% -5%- -1% 0% 1%-5% -10% 6%-10% -7% -3% tbc London 10% -5% 3% The effect on bills by region before transitional relief

  17. Overall change: 0% 0% KEY: -1% -10%- -6% -0% -5%- -1% 0% 1%-5% -4% 6%-10% -3% -1% tbc London 3% -2% 1% The effect on bills by region after transitional relief

  18. The effect on bills by sector

  19. Overall change: 5% -6% KEY: -3% -20 - -11% -1% -10%- -6% -5%- -1% 0% -18% 1%-5% -8% 6%-10% -7% 11%-20% tbc London 19% -13% -3% The effect on bills - offices sector before transitional relief

  20. Overall change: 1% -2% KEY: -1% -20 - -11% 0% -10%- -6% -5%- -1% 0% -7% 1%-5% -3% 6%-10% -2% 11%-20% tbc London 5% -4% -1% The effect on bills - offices sector after transitional relief

  21. Overall change: 1% -1% KEY: -1% -20 - -11% 1% -10%- -6% -5%- -1% 0% -8% 1%-5% -4% 6%-10% 1% 11%-20% tbc London 4% 0% 5% The effect on bills - retail sector before transitional relief

  22. -1% KEY: 0% -20 - -11% 1% -10%- -6% -5%- -1% 0% -3% 1%-5% -1% 6%-10% 1% 11%-20% tbc London 1% 1% 3% The effect on bills - retail sector after transitional relief Overall change: 1%

  23. Overall change: -9% -7% KEY: -9% -20 - -11% -9% -10%- -6% -5%- -1% 0% -16% 1%-5% -13% 6%-10% -9% 11%-20% tbc London 0% -12% -3% The effect on bills - industry sector before transitional relief

  24. Overall change: -3% -2% KEY: -3% -20 - -11% -4% -10%- -6% -5%- -1% 0% -6% 1%-5% -5% 6%-10% -3% 11%-20% tbc London 0% -4% -2% The effect on bills - industry sector after transitional relief

  25. Overall change: 2% 6% KEY: 2% -20 - -11% 3% -10%- -6% -5%- -1% 0% -2% 1%-5% -1% 6%-10% 2% 11%-20% tbc London 4% 0% 7% The effect on bills - other sectors before transitional relief

  26. Overall change: 1% 3% KEY: 0% -20 - -11% 1% -10%- -6% -5%- -1% 0% -1% 1%-5% -1% 6%-10% 0% 11%-20% tbc London 2% 0% 3% The effect on bills - other sectors after transitional relief

  27. The effect on bills - retail by type • The overall bills for the high street will be largely unaffected by the revaluation

  28. Business rate reliefs and discounts • Transitional relief for 2010 list • Small Business Rate Relief • small business rate multiplier • percentage discounts • Additional reliefs for charities, some non-profit and some rural businesses

  29. Communicating the revaluation • VOA working to raise awareness and understanding of the revaluation and the implications for ratepayers • Ensure accessibility to accurate information – www.voa.gov.uk/2010 • Fact sheet with bills • Business events • Trade associations – content for publications and websites • Reduction of ‘avoidable contact’ – saving time and money for both sides

  30. October 2009 – the new valuations

  31. Breaks down the rateable value • Indicates what to do – if anything – by when • Offers choice of channels to contact us through October 2009 – the new valuations • NOT the bill. An indication of the new bill will be available at: www.businesslink.gov.uk/estimatemyrates

  32. Licensed trade valuations • Sent for the first time for 2010 revaluation • Will carry details of levels of ‘fair maintainable trade’ at the valuation date • Working with licensees and representatives to support understanding

  33. Checking the new rateable value

  34. Checking the new rateable value • Development of online site to enable ratepayers to check and compare their new valuation • More intuitive navigation • More background information • Online support • More detailed enquiries can be raised electronically • Will be accessed via www.voa.gov.uk/2010 • Dedicated helpline for people without web access: 0845 602 2010

  35. Resolution at first point • Ratepayers will still call their council with questions • Often want simple answer to simple question • VOA providing briefings for local authorities • Revaluation Enquiry Guide – REG – available on the website

  36. Further information • General revaluation information www.voa.gov.uk/2010 • Information on the whole business rates system and an indication of individual rates bill www.businesslink.gov.uk www.businesslink.gov.uk/estimatemyrates • Central government departments with responsibility for business rates www.communities.gov.uk www.wales.gov.uk

  37. Getting professional advice • Make a choice, not a mistake • Guidance is available on how to chose a professional ratings advisor

  38. Getting professional advice • If you seek professional advice ensure they are reputable • Royal Institution of Chartered Surveyors (RICS) www.rics.org • Institute of Revenues Rating and Valuation (IRRV) www.irrv.net • The Rating Surveyors’ Association www.ratingsurveyorsassociation.org • Don’t pay or sign until you are completely sure

More Related