Business Rates - Rateable Values
The Rateable Value of a non-domestic hereditament is taken to be "an amount equal to the rent at which it is estimated the hereditament might reasonably be expected to let from year to year if the tenant undertook to pay all tenant's rates and taxes and to bear the cost of the repairs and insurance and other expenses (if any) necessary to maintain the hereditament in a state to command that rent."
Rateable Values are contained in the Local Rating List, the latest of which came into force on 1 April 2005. The Rateable Values in this List are based on the annual open market rental value as at 1 April 2003.
Grounds for Appeal
The circumstances in which a proposal may be made to alter the Local Rating List are as follows:
- The rateable value shown in the List was inaccurate on the day the List was compiled
- The rateable value is inaccurate because of a material change of circumstances which occurred on or after the day on which the List was compiled
- The rateable value is or has been inaccurate, because of an alteration by the Valuation Officer
- The rateable value or any other information in the List is, or has been, inaccurate because of a decision of a Valuation Tribunal, the Lands Tribunal or a Court in relation to another hereditament
- The day from which an alteration is shown in the List as having effect is wrong
- A hereditament which is not shown in the List ought to be shown
- A hereditament which is shown in the List ought not to be shown
- The List should show that some part of a hereditament is domestic property, or is exempt from Non-Domestic Rating, but does not do so
- The List should not show that some part of a hereditament is domestic property, or is exempt from Non-Domestic Rating, but does so
- Property which is shown in the List as more than one hereditament ought to be shown as one or more different hereditaments
- Property shown in the List as one hereditament ought to be shown as more than one hereditament
- The address shown in the List for a hereditament is wrong
- The description shown in the List for a hereditament is wrong
- Any statement required to be made about the hereditament that it is ‘composite' or ‘part exempt' has been omitted from the List
Broadly speaking, proposals to alter an entry in the Local Rating List may be made at any time whilst the List is in force.
In addition, appeals made on the following grounds can be made at any time before the next revaluation and any change in value will be backdated to the date of the change in circumstances:
- removal of properties from the rating list
- change between domestic and non-domestic use
- splits and mergers of properties
- appeals based on other Valuation Tribunal (VT), Lands Tribunal or Court decisions (appeals on these grounds can be made up until six months after the next revaluation, provided they are also made within six months of the relevant decision).
Who can appeal
An 'interested person' has the right to challenge the accuracy of the Local Rating List, as determined by the Valuation Officer. With certain exceptions, an interested person, in relation to a hereditament, is defined as:
- The occupier
- Any other person having, in any part of the hereditament, a legal estate, or an equitable interest such as would entitle him to possession; and
- A person having a qualifying connection with any of the persons described above (this generally relates to a company which is a subsidiary of another)
The Crown is entitled to appeal where the hereditament forms part of the Crown Estate. The billing authority (or Council) also has the right to appeal in certain circumstances.
Where and how to appeal
Appeals about Rateable Values and other alterations to the Local Rating List should be made to:
The Listing Officer / Valuation Officer
Eastgate House
42 Eastgate
Leeds
West Yorkshire
LS2 7JL
Tel: 0845 6021507
Fax: (0113) 388 4602/3
email: leedsgroup.vo@voa.gis.gov.uk
The Valuation Officer will explain what you need to do to make an appeal. Your appeal should not be made to the Council.
If the Valuation Officer does not agree with your proposal, if you cannot agree an alternative alteration, or if no decision has been made at the end of three months, the Valuation Officer must refer your proposal to a Valuation Tribunal as a formal appeal.
Making an appeal does not allow you to withhold payment of Business Rates in the meantime. If your appeal is successful, you will be entitled to a refund of any overpaid rates. In certain circumstances, you will be entitled to a prescribed amount of interest on the amount which has been overpaid.
For further information about Business Rates Rateable Values see Valuation for Business Rates.
