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Business Rates revaluation 2017

At revaluation the Valuation Office Agency (VOA) adjusts the value of business rates to reflect changes in the property market. The VOA is an executive agency of the Inland Revenue. A revaluation usually happens every 5 years, however this time the government delayed it for a further two years. The next revaluation will take effect from 1 April 2017 based on rateable values from 1 April 2015.

Revaluation is done in order to maintain fairness in the system by redistributing the total amount payable in business rates and to reflect changes in the property market. The total effect of the revaluation is to be financially neutral across the country as a whole.

The VOA calculates the "rateable value" of a property based on an estimate of the open market rental value. Please note this is not the amount you will pay. The rateable value is used to calculate your rates bill. You can estimate your business rates for 1 April 2017 by multiplying the rateable value by the correct 'multiplier' (an amount set by the government). The valuation for the 2017 list year is still in draft form. The VOA will publish the final valuation on 1 April 2017.

Find and check your business rates valuation

The VOA provide a facility to check the rateable value of your property online.

Note: You can use the "Advanced" search option on this link if you use the property reference number shown on your bill.

Appeals against your business rates valuation

You can ask the VOA to correct your property's valuation if you think it is wrong. Find out about details of grounds for appeal and how to appeal

Or you can e-mail nsorevalenquiries@voa.gsi.gov.uk with:

  • your name and telephone number

  • your relationship to the property (for example owner or occupier)

  • the property address

  • details about the property you think are incorrect and why

You must continue to pay your rates bill during the appeal process

Changes in small business rates relief for April 2017

The government announced in the April 2016 Budget (taking effect in 2017/18) that they would permanently double Small Business Rate Relief (SBRR) from 50% to 100% and increase the thresholds to benefit a greater number of businesses. Businesses premises with a rateable value of £12,000 and below will receive 100% relief. Businesses premises a rateable value between £12,000 and £15,000 will receive phased relief.

Rateable multipliers for 2017-18 & the transition Scheme

The provisional multipliers for the 2017-18 financial year are: -

  • 46.6 pence for the Small Business Rate Multiplier

  • 47.9 pence for the Standard Multiplier

Due to changes in property values between revaluations a transitional relief scheme is required to help phase in the effect of these changes by limiting the bill increase.

The transitional relief scheme has been developed using detailed and actual data on the 2017 revaluation prepared independently by the Valuation Office Agency. The government is required by law to ensure the resulting scheme will be revenue neutral. In order to meet this legal requirement the government has found it is necessary for the 2017 revaluation to provide less relief for large businesses than in 2010.

The government will introduce the following transitional relief scheme for the 2017 revaluation:

Final: Transitional Arrangements 2017 revaluation (before inflation 2% for 2017/2018) funded by 3 caps on reductions

Transitional arrangements 2017
  *Property Size 2017/18 2018/19 2019/20 2020/21 2021/22
 Upwards Cap  Small  5.0%  7.5%   10.0%   15.0%  15.0%
   Medium  12.5%  17.5%  20.0%   25.0%  25.0%
   Large  42.0%  32.0%  49.0%  16.0%  6.0%
 Downwards Cap  Small  20.0%  30.0%  35.0%   55.0%  55.0%
   Medium  10.0%  15.0%  20.0%  25.0%  25.0%
   Large  4.1%  4.6%  5.9%  5.8%  4.8%
                                                                                               

*Property size is determined by rateable value. Small is up to £28,000 Medium is above £28,000 and large is above £100,000

Note: these are year on year caps on increases. For instance, the maximum increase for small properties over 5 years would be 64%. But a small property with an increase of 7% would reach their full bill in year 2.

If you are entitled to transitional relief this will be automatically awarded and be shown on the front of your bill.