The five-year revaluation cycle for non-domestic business rates is now moving swiftly towards to the 1 April 2010 revaluation and the Valuation Office Agency (VOA) are now busy preparing draft valuations. This means that the remainder of 2009 will be critical to monitoring how this new Rates list will turn out.

The premises of our Minerals & Waste Management clients are, along with all other business premises, revalued by the VOA every five years, to re-align the Rateable Value with changes in property prices, rents and construction costs in the intervening period.  Broadly speaking, these new assessments will be based on cost and rental evidence collated by the VOA at 1 April 2008. This date is critical, and seen by many to be the ‘bearer of bad news’, falling as it does prior to the more major impacts of the global economic downturn. As such, research suggests that significant increases in values may be seen in this revaluation. These new Rateable Values will apply to properties for the next five year period from 1 April 2010 to 31 March 2015.

In the minerals & waste management sector, assessments are, in the main, derived from royalty rates on extraction or disposal, together with elements for buildings, plant and machinery, valued on a contractor’s, or depreciated replacement cost basis.

In respect of the former, any evidence collated by the VOA that represents increases in minerals or landfill royalty rates will be utilised to increase these elements of the valuation. An increasing number of leases linked to gate or sale prices, particularly in the waste management field will themselves yield increased notional royalty rates on tha back of increased gate prices between the valuation lists. 

In respect of the building and plant asset elements of the properties, increased building and fabrication costs are also likely to provide the basis for increases in Rateable Values at 1 April 2008.

The Government is still to comment on whether changes will be implemented on matters such as Transitional Relief, and at this stage we will not know the likely business rate multiplier (UBR) for 2010/11. As such the outlook remains cloudy.

In these difficult times, further uncertainty, coming on the back of the Government’s heavy handed modifications to empty property relief, will no doubt be a bitter pill to swallow.

Our Experts Can Help

Carter Jonas’ Minerals & Waste Management Division has over 20 years experience in the Rating of specialist minerals, waste and heavy manufacturing properties, and can demonstrate an excellent track record in making savings for our clients through various revaluations. 

Our surveyors are specifically trained in this specialist field, and we also represent our clients’ interests in Rating groups for various trade bodies such as the British Ceramics Confederation. In addition, we offer a full management service for your Rates, including accurate bill checking and budgeting, applications for void relief and submission of rating returns on your behalf. 

Our goal is simple – cost effective management of all parts of the Rates process, not only appeals, but ongoing careful monitoring of your assessments.

Draft Rates lists are expected during the middle to latter part of 2009, with formal listing in April next year. The team would be more than happy to hear from you to discuss this forthcoming revaluation, or indeed provide advice to you in the remaining months of the current list.

Visit the Valuation Office Agency (VOA) website