The business rates revaluation is coming. Commercial rateable values will be calculated based on information received as at 1 April 2015. This means that changes to any buildings recorded on the Valuation Office’s Form of Return will be taken into consideration when calculating rateable values for the 2017 revaluation.
In the education sector, the Valuation Office categorises buildings according to their use. The estimated replacement cost of a building within a specific category will help to make up its eventual rateable value.
What, therefore, can cause a school’s rateable value to change?
The Beattie Partnership has recently produced a guide to the 2017 Revaluation for the education sector. Head of Education, Brian Sayers, states, “It is important for schools and colleges to be prepared. We want them to have all the necessary information in advance of the Revaluation. We’ve put our booklet together with this specific aim.”
Brian explains, “There are three key elements that can cause a school’s rateable value to change. These are;
- physical changes to buildings
- changes to the use of buildings
- how school buildings interact with Council Tax.”
There could be numerous reasons for a change in assessment. These could include;
- new buildings and facilities or major refurbishments to existing buildings
- if an existing structure has been demolished
- if a school sells a building, or acquires a new one
- building extensions and alterations
- upgrades to sports facilities
“A change in how a building is being used can affect a school’s rateable value, because the Valuation Office categorises school buildings by use”, Brian continues. “For example, in residential schools, buildings that include domestic accommodation will be subject to a reduction in their estimated replacement cost as a proportion of the relevant floor areas used domestically”.
“Where there is some impact, or change, to the Council Tax levy on school buildings, this can affect a rateable value. This may be to do with shared domestic and non-domestic areas, or where property is being vacated”.
“It can be complicated for schools when it comes to assessing their rateable values,” concludes Brian. “We advise that they need to check anything and everything that might have an impact on their assessment. This is an area in which The Beattie Partnership has a vast amount of professional experience.”
To get a copy of The Beattie Partnership’s report, Education Sector 2017 Revaluation: What You Need to Know, please click here.
Alternatively, if you want to discuss any specific issues, please contact The Beattie Partnership by phone on 0161 228 2224 or visit their website
Image courtesy of Jorge Kavicki