Business Rates are due for review with effect from 1 April 2010 in line with the 5-yearly rates review cycle. All business premises will have their rateable value re-assessed based on the market rental value of the property on 1 April 2008 - the valuation date.
Some property is exempt from business rates including churches, land and property used for agriculture and fish farms, but the review will affect many rural business that own or rent business premises, including some farm diversification enterprises which fall outside the scope of agriculture.
Equestrian businesses will also be affected by the review. Livery yards, riding schools and training establishments are all classified as business premises and are liable to pay business rates.
The Valuation Office Agency (VOA) notified all rate payers in October 2009 of their new draft rateable values. You can now query the valuation and the information held on the property which is used to calculate the value. For example if there has been a partial demolition or a change in a property division a business can appeal the value and seek a reduction.
In some circumstances relief is available to reduce the rate bill. Small Business Rate Relief applies to single premises with a rateable value less than £15,000 rising to £18,000 on 1 April 2010. This is a tiered relief and properties with a rateable value of less than £5,000 benefit from a 50% reduction in the rate bill.
Certain rural businesses with rateable values up to £16,500 may be able to claim Rural Rate Relief. To qualify for this relief, the businesses must appear in the local Rural Settlement List for a defined settlement of less than 3,000 people. Transitional arrangements are also available for significant increases, or decreases in rates bills.
In the current economic climate it is important to check the proposed rates and seek professional advice where you believe there may be grounds to appeal. Many small and rural enterprises operate on relatively small profit margins, and making sure the business rate bill is correct could make a big difference. A professional advisor will advise whether an appeal is likely to be successful.