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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:

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The area it is in

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The type of pub or licensed premises

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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.

With the dust settling on the announcement of provisional business rates for 2017 onwards, we take a look at the essential questions ahead of the new rates being introduced in April 2017.

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Is the fair maintainable trade level (FMT ) correct and applicable to your pub today?

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Did you move into your pub after 2015 and you didn't supply any figures to VOA?

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What information regarding your trading figures and rent payments rvere supplied to the VOA ? Do you think these have materially changed since 2015?

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A competitor has just opened a new pub down the road and my trade has been badly hit - can I appeal?

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I understand the small business rate relief on pubs has been increased to 100% and the ratable value threshold raised to £12,000. Does this mean I will pay no rates from April 2017?

Because of this revaluation you must act now to make sure your business rates payments are kept to a minimum, here’s why.

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You may need to appeal against your previous rates bills before you lose the right to.

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You may need to appeal your future rates bills.

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You may be able to reduce your rates early before you have to start to pay.

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Your estimated rates bill for the next year will change, we can calculate this for you.

Call us now on 0800 652 2021 for honest, straightforward advice.

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