2023 Rating Revaluation

2023 Rating Revaluation – An Overview

With the 2023 Rating Revaluation it is fair to say the changes being introduced to the business rates system from 1 April 2023 are the most radical in over 30 years. Why so?

One significant change is the move to a shorter 3-yearly revaluation cycle, from the 5-yearly pattern introduced in 1990; the Government has long accepted a need to make rating assessments more aligned with the commercial property market, given that Rateable Values are based on an assumed rental valuation.

The other is the anticipated near wholesale shift in responsibility for the ‘maintenance’ of the Rating List from the Valuation Office Agency (VOA) to ratepayers, in the form of a Duty to Notify provision.

2023 Rating List assessments

2023 List assessments are based on an assumed ‘open-market’ rental value of a property as at
1 April 2021 (the 2017 Rating List assessments were based on a valuation date of 1 April 2015).

A new revaluation cycle warrants a detailed review of any potential mitigation angles associated with:

  • The rating valuation basis applied by the VOA (per sqm)
  • Floor areas
  • Specification of the property and layout
  • Rental evidence (where applicable)
  • Potential for splits or mergers
  • Valuation Scheme

The route for challenging a rating assessment continues via the formal Check, Challenge, Appeal (CCA) process.

Shorter-term saving opportunities can arise from:

Reliefs (including on under-utilised accommodation)

Material changes (such as the nuisances caused by adjacent/nearby building works)

Reducing an assessment can generate savings for up to three rate years (or more, if the revaluation cycle happens to be extended again by the Government).