Business Rates - Re-rating B1 to B8
Discussion
Hi there. I wonder if anyone has any experience they could share?
I have some space that is rated as B1 even though it has been used for some years as B8. I would like to have it re-classified as B8 on the rating list (for obvious cost-saving reasons).
What should I be considering / anticipating as regards the VOA? Is the matter of use a matter of fact (it is a warehouse / storage unit right now), or something else? Can they argue that, since it could be used as B1 then it must continue to be rated as B1?
What else do I not know that I should know?!
Thank you.
I have some space that is rated as B1 even though it has been used for some years as B8. I would like to have it re-classified as B8 on the rating list (for obvious cost-saving reasons).
What should I be considering / anticipating as regards the VOA? Is the matter of use a matter of fact (it is a warehouse / storage unit right now), or something else? Can they argue that, since it could be used as B1 then it must continue to be rated as B1?
What else do I not know that I should know?!
Thank you.
Can’t remember the full phrase, but hypothetical rating demise is considered vacant and to let.. so if it looks like a shop but is used as a storage unit it will be valued as a shop...
However there is also a degree of fact.... if it’s used as a storage unit it really is. It will depend on the facts of the individual case.
Well advised to use an experienced professional and ask here for recommendations.
Chris will be along later to tell me I’m out of date and have forgotten loads of stuff
However there is also a degree of fact.... if it’s used as a storage unit it really is. It will depend on the facts of the individual case.
Well advised to use an experienced professional and ask here for recommendations.
Chris will be along later to tell me I’m out of date and have forgotten loads of stuff
Broadly speaking surveyor is correct. The rateable value is meant to represent the rent a property would let between a willing landlord and willing tenant on the antecedent valuation date (1 April 2015) assuming the statutory factors which are broadly that the tenant repairs and insures and that the landlord has done any economic repair works before the lease commences.
Ultimately this is likely to mean a B1 gets valued as a B1 unit because thats what it is and its likely that the landlord will do any works necessary (potentially installing celings, partitioning etc).
If you want to past details of the property or PM them to me I'll have a quick look at it and see if I can offer any other advice.
Ultimately this is likely to mean a B1 gets valued as a B1 unit because thats what it is and its likely that the landlord will do any works necessary (potentially installing celings, partitioning etc).
If you want to past details of the property or PM them to me I'll have a quick look at it and see if I can offer any other advice.
Chrisgr31 said:
Broadly speaking surveyor is correct. The rateable value is meant to represent the rent a property would let between a willing landlord and willing tenant on the antecedent valuation date (1 April 2015) assuming the statutory factors which are broadly that the tenant repairs and insures and that the landlord has done any economic repair works before the lease commences.
Ultimately this is likely to mean a B1 gets valued as a B1 unit because thats what it is and its likely that the landlord will do any works necessary (potentially installing celings, partitioning etc).
If you want to past details of the property or PM them to me I'll have a quick look at it and see if I can offer any other advice.
Thank you.Ultimately this is likely to mean a B1 gets valued as a B1 unit because thats what it is and its likely that the landlord will do any works necessary (potentially installing celings, partitioning etc).
If you want to past details of the property or PM them to me I'll have a quick look at it and see if I can offer any other advice.
Obviously B1 to B8 is now a permitted development right up to 500 square metres. No planning consent required. So what it is seems to be a matter of use and not of as-built. Hence my question (and sorry for not being clearer on that particular piece of context).
If one puts property guardians into a B1, introducing some living accoutrements and some guardians, the VOA will attend when asked and say it is not adapted for habitation - take it off of the list.
So I suppose the question is what is required to show that the B1 to B8 "conversion" (not requiring planning consent) has occurred? Since B8 is a use class, not a build standard.
The move to residential is slightly different because if a property is domestic it doesn't fall to be valued as a non-domestic building. So once it is domestic that's it. Although I suspect that at some point someone will challenge the guardian schemes.
In your case its going to depend on the facts of the case its not something I am going to advise on because it will depend on the specific circumstances, the mode and category of other properties etc.
In your case its going to depend on the facts of the case its not something I am going to advise on because it will depend on the specific circumstances, the mode and category of other properties etc.
Chrisgr31 said:
The move to residential is slightly different because if a property is domestic it doesn't fall to be valued as a non-domestic building. So once it is domestic that's it. Although I suspect that at some point someone will challenge the guardian schemes.
In your case its going to depend on the facts of the case its not something I am going to advise on because it will depend on the specific circumstances, the mode and category of other properties etc.
Thank you. And in fairness I wasn't asking for specific advice (that would be unfair to expect for the reasons you've outlined), but instead something a bit more general. If B1 to B8 is allowable as a change of use without planning permission, does it not follow that the use itself must determine the valuation for business rates purposes (in that case at least)?In your case its going to depend on the facts of the case its not something I am going to advise on because it will depend on the specific circumstances, the mode and category of other properties etc.
I may of course have to read the rating manual and / or engage a professional on this one; I came here really to get a steer on that high level question (and if the point is arguable either way, that at least equips me to understand the issue before taking it further).
Its unlikely to be the actual use that affects the value, more likely to be the use that it is implicated by the type and quality of the fit out. So space fitted out for offices will be valued as offices and space fitted for storage as storage.
Ironically just dealing with one of these myself. My colleague who inspected it noted the use as store, the VO says its offices. I now have to go and have a look at it, to see what I think!
Ironically just dealing with one of these myself. My colleague who inspected it noted the use as store, the VO says its offices. I now have to go and have a look at it, to see what I think!
Chrisgr31 said:
Its unlikely to be the actual use that affects the value, more likely to be the use that it is implicated by the type and quality of the fit out. So space fitted out for offices will be valued as offices and space fitted for storage as storage.
Ironically just dealing with one of these myself. My colleague who inspected it noted the use as store, the VO says its offices. I now have to go and have a look at it, to see what I think!
In my case, some of it *was* offices 20 years ago, but is now in a very poor state of repair (for an office). It is, however, full of pallet racking, goods being stored, etc.Ironically just dealing with one of these myself. My colleague who inspected it noted the use as store, the VO says its offices. I now have to go and have a look at it, to see what I think!
The difference in business rates payable (based upon local exemplars) is about 8:1 so quite a big reason to get it changed!
Chrisgr31 said:
You got any photos? How does the unit compare with adjacent ones? The VOs mantra at the moment is that its just repair and of course poor repair doesnt mean a reduction. This could be different though
Hi there. I'm not sure if I have any here; I'll take a look. If not it is about 3 hours round trip from where I am right now!Gassing Station | Business | Top of Page | What's New | My Stuff