The Revaluation of Business Rates 2023 - What Does This Mean for Your Business?

WHAT IS A REVALUATION?

Revaluation is when the Valuation Office Agency (VOA) assesses and makes updates to the rateable values of all business properties, this is usually completed every five years. The VOA make these updates in order to maintain fairness across all sectors and within the system; redistributing the payable business rates and reflecting any changes within the property market.

The most recent revaluation came into effect in England and Wales on 1 April 2017, based on rateable values from 1 April 2015; with the next revaluation coming into effect on 1 April 2023.

Find out your business rates valuation online.

What is the New 2023 Rateable Value?

The new Rateable Values will be based on rental levels prevailing on 1st April 2021. With the current Rateable Values being based on rental levels prevailing over seven years ago, there are likely to be big swings in liability change following the 2023 Revaluation. 

What is the New 2023/24 Uniform Business Rate (Ubr)?

At a revaluation the UBR (or Business Rates multiplier) is reset in order to try and bring in the same tax income in real terms to the Government. For example, if the total Rateable Value of the county following the revaluation was reduced by 10% then the UBR would increase by 10% to bring in the same income. 

With the varying fortunes of the different property sectors as highlighted above, it is difficult to predict which way this will go. Crucially, however, this figure will be further increased by the prevailing level of CPI inflation as of September 2022. With the current high level of inflation, this could lead to a substantial rise in the multiplier. 

During the Covid pandemic, the government chose to freeze increases in the UBR, but with tax rises and public spending cuts expected, this may not be the case going forward. The Government is expected to announce the likely 2023/24 UBR before the end of 2022.