Commercial Rates & Revaluation
You are almost certainly liable to pay commercial rates if you occupy business premises. Commercial rates are a tax based on the rateable value of the property, which reflects its rental value. The rateable value can, however, be challenged. It may change in any case if the premises are altered or if their value is affected by changes in the locality. Some limited classes of property are exempt from business rates altogether.
What is the business rates revaluation, why is it done and what does it mean for me?
The Valuation Office (VO) carries out revisions and revaluations of rateable values of commercial and industrial properties. The rateable value for your non-domestic or business property may be reviewed as part of either a revision or general revaluation and revision takes account of structural alterations to individual properties such as extensions, subdivisions and new developments.
What is a revaluation?
A revaluation is the production of an up-to-date Valuation List of all commercial and industrial property, within a local authority area, by reference to property rental values at a specified valuation date. Revaluation takes account of the relative changes in rental value between properties over time, and is the statutory means whereby all rateable valuations within a local authority are reassessed so that all ratepayers pay a fair share of the commercial rates to be raised. The (VO) strives to maintain fairness in the rating system, by ensuring that the rates payable on non-domestic and business properties reflect any changes in the relative rental value of property over time and the relativity between similar properties
If you require more information on Rates, please check out our guide: Guide to Professional Advice on Revaluations and General Rates Assessments
If you require professional support, you can find a Valuer here: List of rating consultants
You will receive a rate demand from the appropriate local authority around February each year. Normally you will be able to pay in two moieties, one in February and one in July. Most local authorities will accept equal standing order monthly payments.
- Rateable value, broadly speaking, is the annual rental value that a property could be let for at a specified valuation date
- Rateable value is used by local councils as the basis for calculating non-domestic and business properties rate bills
- The VO gathers details of actual rents paid and other available evidence at or around the valuation date, and uses this to assess the rental value of all rateable property in that area
- For certain property types such as, pubs and leisure premises, rental value and rateable value may be assessed with reference to levels of trade
- For some particular types of property, such as pharmaceutical plants or other specialised properties, rental value may be calculated by analyzing the cost of rebuilding the property
- It’s your choice whether or not you employ a rating consultant, and the VO has striven to present rating information clearly, in all its communications materials, so that you can be self-sufficient. If you are not clear on any aspect it would be prudent to get professional advice.
- While of course you can deal with the VO directly, a professional rating consultant will provide you with independent and impartial advice on your rates liability and dealing with any issues that may arise.
- Helping you understand your rateable value
- Checking the details of your new valuation
- Making sure it is consistent with others
- Looking at evidence that supports the valuation
- Managing any query or challenge to your new valuation
- Checking the accuracy of your rates bill and advising on rates liability
- Representing you at Appeal to the Commissioner or the Valuation Tribunal
- Ensure he/she is a member of one of the main representative bodies – Society of Chartered Surveyors Ireland and/or RICS
- Speak to other local businesses to see if they have used the services of an agent and whether they have recommendations
- When choosing an agent, you may find it helpful to ask for details of previous work carried out on businesses similar to yours
- Ask for a clear breakdown of the fees you will be expected to pay
- Check the details of any contract or agreement you are asked to sign