| London, Friday 1 October, 2004
Detailed information about the new rateable values for businesses
in England and Wales that take effect from 1 April 2005 is being
released from today by the Valuation Office Agency (VOA). Information
about the overall effect of revaluation was published in the summer
but over the next few weeks individual businesses will be sent
information about how the new valuation for their own property
has been assessed. The information will be sent in the form of
summary valuations - a detailed description of a business property's
attributes and a breakdown of how its total rateable value has
been derived. Summary valuations are a new initiative, and part
of an ongoing drive to deliver clear, easily understandable information
on the 2005 revaluation exercise.
The 2005 revaluation exercise is designed to make business rates
more current, more relevant, and fairer. This is not about collecting
more tax - up to 60% of businesses could see a fall in their relative
rateable values and their rates bills. Furthermore, tax rates for
businesses will be reduced to compensate for rises in rateable
value, with additional rates relief for small businesses (applicable
in England only) and a transitional relief scheme for those facing
increases already in
place.
Summary valuations deliver a step change in customer service and
business efficiency, and come as a direct result of the need for
increased openness around the valuation process expressed the National
Ratepayers’ Valuation Forum (NRVF). Previously, the VOA supplied
only rateable values - simple category descriptions and basic property
values - to businesses. The new, more detailed, summary valuations
will save time and money for the ratepayer by making the ratings
system more transparent, and will support businesses in their financial
planning.
Around 1.3 million hard copy summary valuations will be sent
to businesses throughout England and Wales, from 1st October.
To ensure that the system is working efficiently, the VOA is
urging all ratepayers to carefully check the details of their
summary valuation; if the address is incorrect or the details
about the property they occupy are wrong, ratepayers should amend
the valuation and post it back to the issuing office.
The VOA will also publish the summary valuations on its website.
This will give ratepayers the ability to compare their valuation
with other similar properties in their area to satisfy themselves
that it is fair and consistent.
To support the publication of the summary valuations, a dedicated
VOA helpline has also been set up to handle queries from ratepayers
- 0845 602 1507. Lines will be open from 9:00am to 5:00pm Monday
to Friday (calls charged at local rate). The helpline will be staffed
by fully trained VOA employees. Alternatively, ratepayers can write
to, email or visit their local Valuation Office to discuss their
query; contact details will be on the covering letter.
The VOA has developed the new system firmly from the perspective
of the needs of the ratepayer and has worked closely with a range
of business representatives to test the new system and ensure it
meets the needs of the business community. A National Ratepayers’ Valuation
Forum (NRVF) with representatives from some 40 national business
organisations, including the British Retail Consortium and the
Federation of Small Business, was set up to provide a framework
for ratepayers. The VOA meets regularly with NRVF to exchange views
and information and to develop new ratepayer communication and
interaction initiatives.
Chief Executive of the VOA, Andrew Hudson, said: “Making
sure rateable values are accurate when they actually come into
effect in April makes sense for everyone. Summary valuations, together
with all the other information available on our website, should
greatly assist ratepayers in understanding the new valuations and
enable them to plan ahead with confidence. As part of this, we
want people to check the details on their summary valuation and,
if they spot errors, to tell us so we can, where possible, make
any changes before the rates bills go out next year”
- Ends -
Notes for editors:
About the Valuation Office Agency (VOA)
The Valuation Office Agency is an Executive Agency of the Inland
Revenue. It is responsible for valuing domestic properties for
council tax purposes in England and Wales; the rating assessments
of all business property in England and Wales; valuations of
land and property for Capital Gains Tax and Inheritance Tax;
and Right to Buy determinations in England, Wales and Scotland.
It also carries out valuations for other government departments
and some local authorities. The Valuation Office Agency has around
5500 employees and a national network of 80 offices providing
service and assistance at a local level.
Office contact details can be found in the telephone directory
under ‘Valuation Office’ for England and Wales or ‘District
Valuer’ for Scotland. Further information can be found on
the website at www.voa.gov.uk.
About Revaluation and Rateable Value
The VOA is responsible for assessing the rateable value of some
1.75 million non-domestic (mainly business) properties in England
and Wales. Rateable values are brought up to date every five
years, this is known as revaluation. The new values are published
today and take effect in rate bills from 1 April 2005. Regular
revaluations are important to take into account changes in the
property market.
In broad terms, rateable value is based on the annual rent of
a property assuming it was available on the open market at a set
valuation date (for the 2005 revaluation, the valuation date is
1 April 2003). The use of a common date for the valuation of all
properties ensures fairness for all ratepayers. Rateable value
is not the sum to paid in rates; it is a key factor in its calculation.
To calculate the rates bill the local authority multiplies the
rateable value by the Uniform Business Rate, a factor which is
set by central government – the Office of the Deputy Prime
Minister in England and the Welsh Assembly Government in Wales.
This may also be referred to as UBR or the ‘multiplier’.
Reliefs or other adjustments, including transitional relief, may
also affect bills. Due to these other adjustments, an increase
or decrease in rateable value may not automatically lead to larger
or smaller rates bills. Local authorities not only calculate final
rates bills, they are also responsible for collecting monies. Local
authorities will use the new rateable values to calculate rates
bills for the year 2005/06.
Media Enquiries:
Julie Styles
Communications Projects Manager
Tel: 0207 506 1969
Email:julie.styles@voa.gsi.gov.uk
Roger Charles
Communications Projects Co-ordinator
Tel: 020 7506 1927
Email: roger.charles@voa.gsi.gov.uk
Andy Mahady
Communications Projects Co-ordinator
Tel: 020 7506 1934
Email: andy.mahady@voa.gsi.gov.uk
Michelle MacCrossen
Communications Projects Co-ordinator
Tel: 020 7506 1965
Email: michelle.maccrossen@voa.gsi.gov.uk
Steve Perkins
Communications Projects Co-ordinator
Valuation Office Agency
Tel: 0207 506 1926
Email: steven.perkins@voa.gsi.gov.uk
Claire Carvello
Communications Projects Co-ordinator
Valuation Office Agency
Tel: 0114 289 4600
Email: claire.carvello@voa.gsi.gov.uk
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