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Valuation Office Agency releases 2023 draft rating list

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Published: 29 Nov 2022 Update History

Businesses with premises in England and Wales should check the list to ensure revaluations carried out by the Valuation Office Agency (VOA) are accurate. This will enable them to budget for any increased rate liabilities, before they come into force in April 2023.

The values included in the ratings list, published on 21 November 2022, are based on a valuation of each property on 1 April 2021. This value is then multiplied by the business rates multiplier. Reliefs are applied to arrive at the rates liability for the year.

Details of the multiplier and reliefs are included in HMRC’s Business Rates Factsheet released on the same day as the Autumn Statement. The Tax Faculty is expecting more details on the changes to and introduction of new reliefs in the coming months.

It is important for businesses to check the list in case there are any factual inaccuracies that may affect the rateable value of their properties. It is possible to challenge a valuation and report changes that might affect a property’s rateable value with the VOA.

For example, the valuation may have been impacted by any improvement works carried out on the property that may not be accurately reflected in the final figure. It may be appropriate for a business to engage a business rates specialist to assist with this.

Businesses should bear in mind that the property market was in quite a state of turbulence in April 2021. For example, the lack of transactions in office space at that time means that valuations may not have been based on market evidence. At the same time, there was a booming market in industrial premises which could have inflated the valuation of warehouse and factory premises.

It is important for businesses to get a good understanding of their rate liabilities from next year so that they can plan and budget accordingly.

 
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