What is the 2023 Revaluation?

During revaluation, the Valuation Office Agency (VOA) adjusts the rateable value of business properties to reflect changes in the property market.

The 2023 revaluation will come into effect in England and Wales on 1 April 2023, based on rental valuations from 1 April 2021, and will apply for the 2023 rating period. The current revaluation came into effect on 1 April 2017 (the 2017 rating period), based on rental values from 1 April 2015.

The rental values used to set a rateable value of a property are taken on a specific date in time — which you will note is 2 years before the start of the rating period. This date is known as the Antecedent Valuation Date (AVD).

The current expectation is for the 2023 rating period to end on 31st March 2026.  But considering that the 2010 rating period should have ended in 2015, but actually ran until 2017, and the 2017 rating period should have ended in 2021 but will actually end in 2023, there can be no assurances that this three year rating period will be correct, and will not be altered as they have been in the past.

The details of the new rateable values are typically published six months before the start of the rating period, so we are likely to see the Draft Rating List published on 1st October 2023.

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Why is the 2023 revaluation important?

Business rates are a form of tax, and as with any tax, the amount paid must be correct and fair. This revaluation marks the start of a government commitment to shorter, more accurate, rating periods which will be three years in length.  Historically, and notwithstanding the extensions applied to both the 2010 and 2017 revaluations, revaluations have been five years in length.

The commitment to shorter revaluations is intended to ensure rateable values are more accurate and reliable, and that the business rates paid are accurate. Coming into a shorter revaluation cycle is likely to be positive but will only work if the discrepancies of the 2010 and 2017 rating periods are corrected and ratepayers ensure that FORs are completed accurately and that the base information used to submit them is correct.

That means getting a professional to submit a check in the current rating period so that, whatever happens in the future, the foundation information for the 2026 rating period (when checks will be abolished) is correct.

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