Business rates and how to reduce them

In the current economic climate hotel and restaurant operators nation-wide are seeking to minimise overheads. A lot can be done to reduce the impact of rate bills, cut operational costs and enhance profitability.

An occupier's rates liability is calculated by multiplying the rateable value by the uniform business rate.

What is the rateable value?
On 1 April 2000 all commercial property in England and Wales was revalued for rating purposes. Each property was given a rateable value representing the notional rental value of the property on 1 April 1998.

What is the uniform business rate?
Known as the UBR, this was introduced with the rating revaluation done in 1990. Officially known as the National Non-Domestic Rate, the UBR is set by central government and is adjusted each year in line with inflation.

When can an appeal be lodged?
Appeals can be lodged in the following circumstances:

• Commencement of the rating list - Assessments with an effective date of 1 April 2000, i.e. those done at the last rating revaluation, can be appealed at any time, but any reduction can only be backdated to the start of the present rating year (1 April).
• New occupations - New occupiers or owners can make appeals within six months of taking occupation or acquiring ownership.
• Notice of alteration - The valuation officer may serve a notice of alteration to change the entry in the rating list. This could be to increase the original assessment, or to alter the description of the property. The ratepayer has the right to appeal against a notice of alteration, but this has to be served on the valuation officer within six months.

• Material Change in Circumstances - If there has been a material change in circumstances, the occupier can make an appeal within six months of the date of the change.

  This "material change" will either be a physical alteration to the property itself or physical changes within the immediate environment or locality.

  Physical changes to the property can include instances where parts of the property become unusable due to flood or fire damage, or parts have been demolished or have fallen into considerable disrepair.

  Other physical changes include extensions to and/or divisions of the unit. External changes include any physical factors in the immediate environment or locality, which would affect the notional rental value of the property. Examples include long-term road works, adjoining building works, comprehensive town centre redevelopment or increases in competition in the local area.

Produced by caterer.com in association withEdward Symmons & Partners