We successfully reduced the business rates liability for Made in London Dental, a dental surgery located in Westminster, London. By providing the right evidence to the VOA, we were able to reduce the rateable value by 35.7% from £51,500 to £33,113, saving them £11,596 a year in rates.
Background
Made in London Dental is a dental surgery based in central London, where rateable values tend to be higher than elsewhere in the country. However, there was strong evidence that it was overpaying on business rates, even when compared with other high-value properties in their area.
This opened a case for us to investigate a potentially unfair valuation and explore the possibility of a reduction.
The Challenge
Valuation Office Agency (VOA) groups similar properties into schemes based on their location, type and size. Each scheme is assigned a base rate per square metre, which can vary depending on the property’s characteristics. The property falls under valuation scheme 591180, which includes mostly shops along Buckingham Palace Road, with base rate ranging from £440.00 to £1,500.00 per square metre.
In our challenge we argued that the base rate of £1,100/m² for Made in London Dental was excessive, and £850/m² was a more fair valuation. We based this argument on several key factors.
First, similar properties in the same scheme often had a lower base rate. For example, both Unit 1, 92 Buckingham Palace Road and Ground Floor, 98 Buckingham Palace Road had a base rate of £800.00/m², despite being in better trading positions, closer to Victoria Station.
Second, VOA considers rental figures the main factor when making valuations of properties. That is why we reviewed recent rental data. The comparable property, located at 14–16 Buckingham Palace Road was paying similar rent, yet being twice the size. With that we could argue that the rateable value could be brought down to better reflect the actual rental figure.
And lastly, we argued about the location of the property. Since Made in London Dental is located at the end of a parade, in a relatively disadvantageous trading position, it made little sense for the VOA to rate the property at a higher end of the scheme.
Results
Based on our findings, we proposed a reduction of the rateable value to £39,750. After reviewing the evidence VOA proposed an even greater reduction – to £33,113, effective from 13 February 2024.
This 35.7% reduction better aligns the property’s valuation with actual market conditions and comparable rents, resulting in annual savings of £11,596 for the surgery.
The Takeaway for Business Owners
- Even if your property is located in a high value scheme, you can still challenge unjustified upper-end valuations.
- Comparing your property to other properties in the same scheme and better trading positions makes a stronger case against unfair valuations.
- Actual rental evidence is decisive in challenging incorrect property valuations. We showed that the rental figure, lower than the rateable value, is a strong evidence against an inflated valuation.
- When presented with strong evidence, VOA can significantly reduce the rateable value of property, even below the proposed value in the challenge.
With the right team of experts businesses can challenge their unfair valuations and secure lasting savings.
If you believe that you pay more than you should for your property, it might be time to take a closer look. [a link here]