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Revaluation 2023: Draft Rating List is coming but what does it mean?

Preparations for the rating Revaluation 2023 are well underway, but what should businesses expect next?
October 6, 2022

The next stage in the process is the publication of the Draft Rating List which should be published by the Valuation Office Agency (VOA) on 21 November 2022, subject to any further delays by the VOA.

The Draft Rating List is exactly what it sounds like – a draft list which outlines what the new rateable values (RVs) will be for all commercial properties in England and Wales.

The list is published by the VOA, an executive agency of HMRC, and should coincide with the release of the ‘multiplier’ which is used to calculate your liability.

There are, in fact, two multipliers – a small business multiplier and a standard multiplier. Your business rates are calculated by multiplying the rateable value of your property by the multiplier.

This means that, once published, the Draft List and business rates multipliers will give you the opportunity to forecast what your business rates liability will be for the next financial year (with the following years released at Autumn budget). You can also check for factual errors in your valuation.

The best thing you can do is seek professional advice to cross-check for any factual inaccuracies which may have impacted the rateable value of your property, so that this can be regularlised with the VOA.

Adam Barnfield, Head of Business Rates.
What should you do once these are published?

The best thing you can do is seek professional advice to cross-check for any factual inaccuracies which may have impacted the rateable value of your property, so that this can be regularlised with the VOA.

This can be done both with future business rates liability in mind, as well as exploring the potential for historical overpayments in rates which may have occurred.

What to expect from this year’s Draft List  

The publication of the Draft List is based on valuations of your property on 1 April 2021. Why might this be important?

Well, this ‘antecedent valuation date’ as it is known, was the height of the pandemic at a tumultuous time in property market terms. This means that the valuation of properties at this time were founded on unprecedented events and markets.

In the office sector, transactions were scarce which means that the valuation of your premises will not be based on a significant amount of market evidence – because there simply wasn’t any.

Meanwhile, for occupiers of industrial, warehouse and logistics space, in April 2021 the marketing was booming, so the value of your premises at this time would have increased significantly. This could have a drastic impact on your business rates liability for the next rating period.

This prospect, together with the coming together of rising energy costs and interest rates, could deliver a financial triple whammy for occupiers of industrial premises from 2023.

Get help now

Once you have been notified that the Draft List has been published and the multiplier has been established, it is important to check for any factual errors, so that appropriate representations can be made to the VOA to address any mistakes.

Our team of business rates experts can do this on your behalf – whether you have one premises or a whole portfolio of commercial properties across the UK.

Working with you, we will undertake a business rate audit and provide you with liability calculations based on your premises / portfolio, to help you to budget for this over the next rating period.

We can also explore the full range of business rates reliefs that are potentially available to you, including any historical savings that can be recovered, and will work with the VOA on your behalf to regularise your position.

If you would like support to understand the potential implications of the Draft Rating List on your liability over the next rating period, contact our team for support with your business rates.

*The information in this article is correct based on the date of publication and is subject to potential change based on Government announcements on or after this date.