Property Development Company receive fantastic savings through reliefs.
Case study:
Property Development Company | Stourbridge
Based outside Stourbridge in the West Midlands, our client is a property development and investment company with over 20 years’ experience specialising in retail, leisure, office and residential properties.
KEY
FACTS
£12,524
SAVINGS
Office
PROPERTY TYPE
The Client
The client originally assigned RVA Surveyors to assist with a split of the property as they now only occupied the ground floor yet were still paying business rates on unoccupied areas. During the review our Audit team were also assigned to conduct a forensic review on the property to see if any reliefs could be applied to the client’s account.
The Challenge
Prior to the Check to Split the property by the expert surveyor, our clients Rateable Value (RV) increased from £14,250 to £19,250 between the 2017 and 2023 rating lists. Because of the increase our client was eligible for Supporting Small Business Relief (SSB) for the current 2023 rating period.
However, to prepare for any reductions in Rateable Value (RV) through the Check to split, the Audit Team also submitted on behalf of the client to receive Small Business Rates Relief (SBRR) if the Valuation Office Agency (VOA) returned with a successful reduction. At first the local council wouldn’t apply SBRR to the account for the 2023 rating list until proof of a reduced RV could be proven.
The Solution
To ensure the client received savings through these reliefs, the Audit Team worked directly with the local authority to ensure both SSB and SBRR would be applied. SBRR is the only relief that can be backdated to the 2017 rating list for RVs below £15,000, so the Audit Team requested that SBRR be applied to the 2017 rating period (01/04/17 – 31/03/2023) and SSB for the 2023 rating list starting 01/04/2023.
But once the Valuation Office Agency (VOA) returned regarding the Check to split, the clients RV was successfully reduced to £13,750, meaning that SBRR could now be applied to both rating lists as they were below the £15,000 threshold!
The Outcome
Not only did our client obtain a reduction in RV, but they would now receive considerable savings through the additions of SSB and SBRR, leading to total of £12,524. With the 2026 revaluation just four months away our client can enter the new rating list with reduced liabilities, and the security of knowing their business rates are correct and in line with the use of the property.
