Wholesale Supplier receives substantial savings with RVA Surveyors
Case study:
Wholesale Supplier | Leeds
A Wholesale FMCG (Fast-Moving Consumer Goods) Supplier based in Leeds save over £52,000 on their business rates liabilities.
KEY
FACTS
£52,915
SAVINGS
Warehouse
PROPERTY TYPE
The Client
Based in Leeds, West Yorkshire, our client are a wholesale retailer who specialises in the distribution of fast-moving consumer goods for UK and international retailers, both independent and chain. They appointed RVA Surveyors to conduct an in-depth review of their business rates.
The Problem
Taking occupation in June 2021, our client base their operations from a large warehouse with rental costs at just over £383,000. In the first year of our client occupying the property, they were given 50% rental discount at £191,533, averaging our clients’ rent over a five-year period to £340,169.
Yet the Rateable Value (RV) was set at £412,5000 for the current rating period, which was substantially higher and not reflective of the properties true rental value.
During the in-depth inspection by an expert surveyor from RVA Surveyors, it was found that when entering the current ratings list the client’s property was moved onto a different scheme, which in turn increased the tone/m2 and Rateable Value.
The Solution
To bring the clients Rateable Value back in line with the average rental value, our surveyor compiled evidence to support the reasons for a reduction through a Challenge, which if successful would reduce the RV and tone/m2. Evidence included lease and rental documents, photographs and up to date floor plans.
Our surveyor also investigated a neighbouring identical unit that was built at the same time as the clients, which showed they were in the correct scheme and with an RV in line with their rent. By investigating the identical unit, this would support the surveyors’ findings and reasonings further as to why our client’s Rateable Value was incorrect.
The Outcome
After the submission of evidence, the Valuation Office Agency (VOA) agreed to move our client onto a different scheme, reducing the tone from £70/m2 to 62/m2 and Rateable Value to £365,000 (average between the current and previous rental costs).
The success of the Challenge led to substantial savings dating back to the beginning of the current ratings list, totalling £52,915 and secured our clients historic and future liabilities when entering the next revaluation in April 2026.
