Is rateable value the same as rent?
A property’s rateable value represents the rent the property could have been let for on a certain date set in law.
The rateable value is not the amount you pay, but it is used by local councils to calculate your business rates bill..
What does the rateable value of a property mean?
Rateable value (RV) is a value that is given to all non-domestic and commercial properties. … ‘Rateable value represents the rental value of a property if it was let at the standard valuation date on the basis that the tenant pays for all repairs during the letting.
How much do business rates cost?
Business rates in the UK are a tax on the right to occupy commercial property and typically equate to approximately 50% of annual rent. They represent one of the largest overheads for businesses and substantially impact on profitability.
What is rateable value for water?
Every water company uses Rateable Values to work out how much to charge people who don’t have a water meter. The Values are set by the Valuation Office of the Inland Revenue and are loosely based on the annual rental value of the property.
How can a business reduce rateable value?
If you’re in retail (e.g. a shop, restaurant, café or bar) then you can reduce your business rates by a third with the retail discount. Businesses in Enterprise Zones can also get reduced or even zero rates, and some rural businesses (such as the only shop in a village) can also be totally exempt from business rates.
How do you work out the rateable value?
Estimate your business ratesFind the rateable value of your business. This is an estimate of its open market rental value on 1 April 2015.Check the table to find out which ‘multiplier’ to use. … Multiply your rateable value by your multiplier. … Take away any business rate relief that you’re entitled to.