rating
📖 What is rating? Meaning and definition
Rating involves assessing the 'rateable value' of a property, which is a key figure used to determine the amount of business rates payable. This valuation can be challenged by the 'ratepayer', who is the person or company responsible for paying the rates. Challenges often arise when there are changes to the property or its surroundings that might affect its value, such as disruption from roadworks or the need for significant repairs.
The process of rating involves a 'rating list' which contains the assessed values of properties. If a ratepayer believes their property's valuation is incorrect, they can appeal against the decision, often to a Valuation Tribunal and potentially to the Upper Tribunal (Lands Chamber). These appeals consider various factors, including the condition of the property, any works carried out (whether repairs or improvements), and external factors like local disruption.
Key dates in the rating process include the 'material day' and the 'antecedent valuation date', which are important for determining when a valuation takes effect and what circumstances should be considered. For instance, a property's rateable value might be reduced if it is undergoing refurbishment that renders it incapable of beneficial occupation, or if there are significant roadworks nearby causing disruption to the business.
The aim is to ensure a fair valuation that reflects the property's condition and circumstances, allowing for adjustments to the rateable value where justified. Disputes often centre on whether works are considered repairs (which might reduce value if extensive) or improvements (which might increase it), and whether a property is truly incapable of beneficial occupation.
📋 Requirements
- The property must be a non-domestic property subject to business rates.
- There must be an assessment in the rating list for the property.
- A 'ratepayer' must be identified as responsible for the rates.
- A 'material day' and 'antecedent valuation date' are established for the valuation.
- A proposal for alteration to the rating list must be made if a change in circumstances is alleged.
📝 Procedure
- A property's rateable value is assessed and entered into the rating list.
- The ratepayer receives an assessment of their property's rateable value.
- If the ratepayer disputes the assessment, they can appeal to a Valuation Tribunal.
- The Valuation Tribunal makes a decision regarding the assessment.
- Further appeals can be made to the Upper Tribunal (Lands Chamber) if a party disagrees with the Tribunal's decision.
💡 Examples
- A shop owner successfully appealed for a reduced rateable value because extensive roadworks near their premises caused significant disruption to their business.
- A company disputed their property's valuation, arguing that necessary repairs to their car showroom and workshop should be considered in the assessment, not improvements.
- A firm appealed to have their rateable value reduced to £1 because their building was undergoing an ongoing scheme of refurbishment, making it incapable of beneficial occupation.
- A Valuation Officer reduced a property's pre-works valuation after a re-survey, but maintained their allowance for roadworks, leading to a revised rateable value.
📚 Legal basis
- Local Government Finance Act 1988, Schedule 6, para 2(1)(b)
- Tribunals, Courts and Enforcement Act 2007
❓ Frequently asked questions
What is a 'rateable value'?
The rateable value is the figure assigned to a non-domestic property by the Valuation Office Agency, which is then used by local councils to calculate the business rates payable for that property.
Can I challenge my property's rating?
Yes, if you are the ratepayer and believe your property's valuation in the rating list is incorrect, you can appeal the assessment, often starting with a Valuation Tribunal.
What factors can lead to a change in my property's rateable value?
Factors such as significant roadworks causing disruption, extensive repairs making a property unusable, or other 'material changes of circumstances' can lead to an alteration in the rating list and a change in your rateable value.
What is the difference between repairs and improvements in rating?
Repairs are generally works to restore a property to its previous condition, which might justify a reduction in rateable value if extensive. Improvements are works that enhance the property beyond its previous state, which might lead to an increased rateable value.
What is a 'material day' in rating?
The 'material day' is a specific date used in the valuation process to determine the circumstances that should be considered when assessing a property's rateable value, ensuring consistency in the assessment.
What happens if my property is undergoing refurbishment?
If your property is undergoing an ongoing scheme of refurbishment that renders it incapable of beneficial occupation, it may be possible to have its rateable value reduced, potentially to £1, during that period.