5 Reasons Your Rateable Value Could Be Wrong
Is your business paying more in business rates than it should? An inaccurate rateable value could be affecting your costs.
Whether you occupy an office, retail unit, warehouse, industrial facility or hospitality premises, your business rates liability is influenced by the rateable value assigned to your property by the Valuation Office Agency (VOA).
However, these assessments are not always accurate. Errors in property information, changes to premises and inconsistencies in valuation evidence can all affect whether a rateable value fairly reflects a property.
Here are five reasons why your commercial property's rateable value could be wrong and why it may be worth reviewing.
1. Your Property Details May Be Inaccurate
An accurate rateable value starts with accurate and up-to-date property information.
The VOA considers various characteristics when assessing commercial premises, including floor area, layout, property use and physical features. If the information recorded about your property is incorrect or outdated, it could affect the assessment.
For example, your property may have an incorrect floor area recorded, or certain areas may have been classified or valued incorrectly. Even relatively small discrepancies can have financial implications, particularly for larger commercial premises.
Checking that the details held by the VOA accurately reflect your property is an important first step in establishing whether your rateable value is correct.
2. Your Commercial Property May Have Changed
Commercial properties evolve as businesses grow, adapt and change their operations.
You may have reconfigured your office space, altered the layout of a retail unit, changed the use of part of an industrial building or undertaken structural modifications.
Changes affecting the surrounding area or the circumstances in which a property is occupied may also be relevant to its valuation.
However, these changes are not always reflected in the information used to determine a property's rateable value.
While alterations do not automatically justify a reduction in business rates, certain changes may provide grounds for reassessment, depending on their nature and the applicable rating rules.
It is therefore worth considering whether your property's current assessment accurately reflects its condition and circumstances.
3. The Evidence Behind Your Valuation May Need Reviewing
The VOA uses valuation methods and supporting evidence appropriate to different property types. For many commercial properties, rental evidence from comparable premises plays an important role in establishing rateable values.
However, the quality and relevance of that evidence are important. Rental transactions may relate to different market conditions, lease terms or valuation dates, and not every transaction provides a suitable basis for comparison.
The evidence must also be interpreted correctly. Where adjustments are needed to reflect differences between properties, these should be supported by appropriate valuation analysis.
An assessment based on unsuitable evidence or an incorrect interpretation of that evidence may result in a rateable value that does not accurately reflect the property.
This raises an important question: does your property's rateable value accurately reflect the relevant market evidence and valuation methodology?
A specialist review can examine the evidence underpinning an assessment and identify whether there are grounds to question the valuation.
4. Your Property's Individual Characteristics May Not Be Fully Considered
No two commercial properties are exactly alike. Even properties of a similar size and use can have different physical characteristics that affect their rateable values.
An office may have an unusual configuration or limitations affecting its accommodation. A retail unit may have restricted access or an unconventional layout. An industrial facility may contain a combination of production, storage and ancillary space with different characteristics.
Other factors, such as the condition of a building, accessibility, facilities or physical restrictions, may also be relevant depending on the property type and valuation approach.
These characteristics are not always apparent from property records or desktop assessments alone.
5. Your Rateable Value May Never Have Been Independently Reviewed
When was the last time a business rates specialist reviewed your property's rateable value?
For many businesses, rates bills are treated as a routine operating expense.
Finance teams and property managers regularly review costs such as rent, utilities, maintenance and insurance. However, the rateable value underpinning business rates liability may receive considerably less scrutiny.
If a bill appears consistent with previous years or falls within the expected budget, there may seem little reason to question it.
Yet an assessment that has remained unchanged or has previously been accepted is not necessarily accurate.
An independent review can identify potential discrepancies that may otherwise go unnoticed. This could involve examining property information, historical assessments, valuation evidence and the wider business rates position.
For businesses managing multiple properties, reviewing assessments across a portfolio may also reveal inconsistencies or opportunities that are not immediately apparent when individual premises are considered in isolation.
What Should Commercial Property Owners and Occupiers Do?
The first step is not necessarily to challenge your rateable value. A professional business rates review can establish whether your property's assessment appears reasonable, identify potential inaccuracies and determine whether there are grounds to pursue a reduction.
Importantly, not every property will qualify for a lower rateable value, and submitting a challenge without sufficient evidence may not be appropriate.
A thorough review should consider both the potential savings and any risks associated with challenging an assessment. This helps ensure that decisions are based on relevant evidence rather than assumptions.
With business rates continuing to place pressure on operating budgets, checking the accuracy of your assessments is a practical step towards managing property costs effectively.
Could Your Business Be Paying Too Much in Business Rates?
“Time and again, we identify opportunities for business rates savings that have previously been overlooked or misunderstood.
Our approach is straightforward. We review each case at no cost, assess any potential risks and advise on the most appropriate course of action.
Even where no savings can be identified, businesses gain the peace of mind that their rates have been independently reviewed by specialists and that their assessment has been properly scrutinised.”
Commercial Property Advisors (CPA) specialises in business rates advice and mitigation for commercial properties across a wide range of sectors.
Whether you occupy a single commercial property or manage a nationwide portfolio, our team can review your business rates position and advise whether further action is appropriate.
Our service operates on a No Saving, No Fee basis, meaning you only pay our fee when savings are successfully secured.
Let's Get Started…
Checking whether your commercial property's rateable value is accurate could be the first step towards reducing your business rates.
Simply complete the form below with a few details about your property. If you can upload your latest business rates bill, this will help us understand your current assessment and begin our initial review.
There is no obligation to proceed. Our team will assess the information provided and advise whether there may be grounds to investigate potential savings.
With our No Saving, No Fee approach, you won't pay our fee unless savings are successfully achieved.
