Business Rates in England and Wales - Rateable Value

Rateable Value

Rateable value is an estimate of the annual rent that would be paid for the property at a fixed date two years prior to the beginning of the list (known as the antecedent valuation date), incorporating certain assumptions laid down in the legislation. In order to value a property, a valuer would look at the physical properties of the property (such as size and location), and consider the economic conditions (the market price for similar local properties), along with the nature of the transaction (such as a freehold sale, or agreement of a lease).

Assessing a rateable value requires a valuation that follows the above process, but the matters to be considered are constrained by legislation. So the physical properties are considered not at the present day, but at the Material Day, and are constrained by the valuation assumptions. The economic conditions are considered at the Antecedent Valuation Date. The valuation is based on a hypothetical lease laid down in the valuation assumptions. The Secretary of State may make regulations for certain classes of property that give a statutory formulae for the rateable value, instead of the rental value. These classes include large ports and public utilities.