2017 Business Rates Revaluation Pubs And Licensed Trade
Information about how pubs, bars and other licensed premises are valued for non-domestic rates has been published by the Valuation Office Agency (VOA).
According to the VOA, this involves collecting details of rent, trading levels, and the premise’s location, type and services, and using this information to establish a ‘fair maintainable trade’ (FMT) value.
Fair maintainable trade is a standard valuation approach, used by pub businesses, to calculate pub and licensed trade rents.
The Valuation Office Agency (VOA) uses fair maintainable trade to arrive at the rateable value for pubs and other licensed premises. Rateable value represents rental value as of 1 April 2015. Fair maintainable trade is the annual level of trade – excluding VAT – that a pub can be expected to achieve assuming a reasonably efficient operator.
It is based on:
The area it is in
The type of pub or licensed premises
What services it is able to offer - such as food, gaming or sports screenings
VOA valuations for pubs and licensed premises are based on actual rents and turnovers collected fiom businesses between February and July 2015.
The VOA uses this information to establish levels of fair maintainable trade for all licensed premises, and then apply a percentage to the fair maintainable trade figure to calculate the rateable value.