NI Reval 2023 - Gowlands by Retail NI

John Gowland MRICS Dip Rating ��: (0) 28 7051 7561 ��: (0) 7808 514 643 ��: www.gowlandsni.com Reval 2023 and Beyond… Chartered Surveyors “Recognised as the Gold Standard”

Gowlands Business Rates Savings Specialists • Family-run boutique Rating Consultancy Firm • Regulated by the Royal Institution of Chartered Surveyors (RICS) John Gowland MRICS Dip Rating Managing Director, Rating Consultancy • Member 2018: RICS Rating Diploma Holders Section • Member 2010: Royal Institution of Chartered Surveyors (RICS) • Former Valuer at Land & Property Services About Us “We are Experts at Solving Your Business Rates Problems” About Us

The History of General Revaluations General Revaluations aren’t always plain sailing... • Griffith’s Valuation, 1848-64, primary Valuation List • 1936 – First General Revaluation • 1940 – Second Postponed [WW2] • 1957 – Second General Revaluation • 1975 – Third General Revaluation • 1980 & 1985 – Fourth Postponed • 1997 – Fourth General Revaluation • 2003 – Fifth General Revaluation • 2010 – Sixth Postponed [Great Recession] • 2015 – Sixth General Revaluation • 2020 – Seventh General Revaluation • 2023 – Eighth General Revaluation “We are Experts at Solving Your Business Rates Problems”

Sir Richard Griffith in 1854

Key Dates for Ratepayers “We are Experts at Solving Your Business Rates Problems” Stage Dates 2020 Valuation List Closes 31 March 2023 Reval 2023 Draft Valuation List Informal Review 11 January 2023 to 31 March 2023 Rate Poundages Confirmed Mid February 2023 New Rate Bills Issued 1 April 2023 New Valuation List Published 1 April 2023 Challenge Process Opens for New Valuation List 1 April 2023

Draft Valuation List - Reval 2023 Valuation based only on rents...

25,000 rental returns collected by LPS and used to value 75,000 properties

Schedule

Valuation – NAV is a rent that the property would let for from year to year:

•

12, Paragraph 1

rents

• Based on actual

• Property assumed vacant and to let

landlord

• Hypothetical

and tenant

• In its actual state

charges

paid

tenant

Reval 2023 is unchecked or challenged at this stage “We are Experts at Solving Your Business Rates Problems”

• Repairs, insurance and other expenses and all rates, taxes or public

(if any), being

by the

•

Valuation List - Informal Review

are encouraged to do the following…

Draft

Process Ratepayers

Review the proposed NAV for Reval 2023

valuation,

calculations and

breakdown

Undertake checks on the

checking the accuracy of the property description, floor area

NAV

Check and compare the NAV against that of other similar properties

“We are Experts at Solving Your Business Rates Problems”

Notify LPS of any inaccuracies with the proposed NAV before the publication of the new Valuation List on 1 April 2023

New Valuation List – Basis of Valuation

Valuation based on rents and comparables…

• Schedule 12, Paragraph 2 Valuation – Regard shall be had to the NAVs of comparable hereditaments in the same state and circumstances:

• AVD 1st October 2021

• List comes into force 1st April 2023

• Based on “Tone of the List”

• Comparable NAVs are not assumed to be correct [except on appeal to Lands Tribunal]

• Tone of Values can be displaced if there is strong rental evidence to suggest that it was incorrect

“We are Experts at Solving Your Business Rates Problems”

New Valuation List - Basis of Valuation Continued…

Identifying comparables…

• Comparables consist of similar properties in the same state and circumstances at the date of the DV’s Certificate:

• Construction, age, size, location, layout, planning and repair

Adjusting comparables…

• Adjustment has to be made as comparables are rarely the same:

• Size, position, quality of modernisation, layout, heating, insulation, and the annual repair cost

are Experts at Solving Your Business Rates Problems”

“We

New Valuation List - Basis of Valuation Continued…

Other matters to consider…

• The impact of Article 39A, 1977 Order – The basis on which valuations are to be made for new NAV list:

• Matters affecting the physical state or physical enjoyment of the hereditament

• The mode or category of occupation of the hereditament

• Matters affecting the physical state of the locality in which the hereditament is situated

• The use or occupation of other premises situated in the locality of the hereditament

“We are Experts at Solving Your Business Rates Problems”

•

Rate Bills

considerations…

Rate poundages:

New

Other

•

Expected to be announced in February

Overall change in NAV within retail sector is a decrease of 4% on 2020 values

A significant increase in the rate poundages could offset any NAV reduction

Ratepayers should double check their rate bill for accuracy

Ratepayers should check their eligibility for the various business rates reliefs and allowances that are available “We are Experts at Solving Your Business Rates Problems”

New Valuation List - Formal Challenge Process The Challenge Process…

Stage 1 – Application to District Valuer

Stage 2 – Appeal to Commissioner of Valuation • Stage 3 – Appeal to Lands Tribunal for Northern Ireland “We are Experts at Solving Your Business Rates Problems” Challenge

•

Stage 1 Review of Rates Liability Stage 2 LPS Informal Review Stage 3 LPS & LTNI Challenge Process Stage 4 Recovery of any Credits or Refunds How We Can Help You “We are Experts at Solving Your Business Rates Problems”

��: (0) 28 7051 7561 ��: (0) 7808 514 643 ��: www.gowlandsni.com Get In Touch With Us “We are Experts at Solving Your Business Rates Problems”