Latest news with #ValuationOfficeAgency
BBC News
6 days ago
- Business
- BBC News
High Street shop to close due to 'unfair' business rates
A picture framing shop in Totnes is closing its doors after four years, claiming it is because of "unfair" business 4 Street had been trading well, but owner Steve Fussell said it is not worth the effort when the combined taxes he pays are taking up a third of his business rates on his shop are high, he said, because he is paying the retail rate for the whole of his ground floor, even though only 10% of the space is used for Valuation Office Agency, which sets the rateable value on which business rates are based, said that if a ratepayer believes their valuation is wrong, they can use the online service to check the details. Mr Fussell said he had considered trying to reduce his bill by putting up a wall between the retail area and the it would cost him thousands of pounds and no-one would confirm whether the structural change to the shop would have any effect on what is judged to be retail space, he said."When you look at our turnover and all the different taxes, so the PAYE (Pay As You Earn), the NIC (National Insurance Contribution) the VAT (Value Added Tax), the Corporation Tax and the business rates - that's nearly £50,000 a year gone," said Mr Fussell."Well that's an awful lot of turnover to make a profit to pay that kind of bill." Tim Jones, the Chairman of the South West Business Council believes the current system needs to change."Business rates are currently at a 26-year high, probably double the tax you would pay in France or Germany," said Mr Jones."And it's one of those regressive taxes which you pay, whether or not you're doing any turnover."All of those are issues make this one of the most unpopular taxes we've got and it's having a really negative effect on our high streets," he added. The Valuation Office Agency (VOA) is responsible for setting the rateable value of non-domestic properties in England and Wales for the purposes of business rates, but it is not the same as the business rates bill. Councils use the rateable value to calculate business rates and then use a multiplier and apply any rates relief.A VOA spokesperson said: "Most of our valuations are based on rental values, as well as comparing similar properties nearby to make sure we take a fair and consistent approach."For small shops, we take an extra step to reflect differences in shape and use between properties. We split shops into zones from front to back, with each decreasing in value. Customers are more likely to stay near the front of the shop, so this area has the highest value."If a ratepayer believes their valuation is wrong or wants to check the details we hold about their property, they can use our online service."
Press and Journal
22-05-2025
- Business
- Press and Journal
Heartache of Torry newlyweds Trapped by Raac: 'Having kids is now off the table'
A Torry couple Trapped by Raac, who wed just weeks before Balnagask demolition news, have spoken of 'overwhelming' pressure due to juggling financial worries and a family health crisis. They've shared… Fiona and Ricky Burgess married on June 8 2024, at Banchory Lodge, Deeside. 'It was an amazing, perfect day, but the honeymoon stage was short-lived,' said travel consultant Fiona, 38. Just weeks later, the newlyweds were dealt the 'gutting' blow that Ricky's Torry home was earmarked for demolition following the discovery of Raac in the roofs of the Balnagask 'hen houses'. For IT solutions architect Ricky, it meant more than just the possibility of moving house. 'My cousin lives two doors from us. We have – or rather we had – family all around us. 'Then the Raac news dropped and if they haven't been evacuated and moved somewhere else in Aberdeen, they're in the same position we are, fighting to get a fair value on their homes. 'More than the money, it's like my family is being ripped apart too.' Ricky, 37, bought his three-bedroom house on Pentland Road 14 years ago from a family who had purchased it through the Right-to-Buy scheme. Prior to their marriage, Fiona owned and lived in a two-bed flat in Kincorth. On the run up to their big day, both houses went on the market, so they could sell and start looking for their one 'forever' home together. In Spring 2024, however, the community received confirmation that their homes were built with Raac. 'We had to stop viewings as soon as the news broke about Raac. My house sold so I'm probably one of the only people who moved IN to a Raac-affected home,' said Fiona. It was no less devastating for Ricky. 'We were just married when they said they were getting demolished. Since then, we've asked for a valuation and, basically, we'll be in negative equity by a mile if we sell, and stuck paying a mortgage on a house we no longer have. 'What a start to married life.' At a recent meeting of Torry Raac homeowners in the White Cockade pub, Fiona and Ricky were audibly and visibly upset. Having engaged with Aberdeen City Council's buy-back scheme, they agreed to the Valuation Office Agency assessor visiting their home. 'We just don't believe anything the council says about considering other options or even that they are listening to us. We've had nothing but a letter. 'No one has asked us about our needs. The 'for sale' signs are still up on our house. If they [Aberdeen City Council] want it they can have it. But not for a pittance. They can't leave us in negative equity,' Fiona explained, 'which is what will happen if we accept their paltry offer.' Ricky paid £115k for their home. When it went on the market, it was advertised at £110,000 to attract offers above that. They've been offered £73,000 by ACC. 'I have most of my mortgage to pay so you can understand why we're upset,' Ricky added. 'The pressure is ridiculous.' So great, in fact, that the couple have 'taken off the table' their plans to start a family. An emotional Fiona explained. 'Age isn't on my side. So the plan was always to get married, get settled, and then talk about and plan for our family right away. 'I'd love to have kids but how could we bring them into this? We could be shackled with more debt than we can handle and we don't know where we'll be or even who will be around us. 'Everything is being stolen from us. Sadly, the clock is ticking on multiple fronts for our family.' Fiona's 87-year-old grandfather is also a Raac homeowner. They worry he won't see justice served. And her mum has recently been dealt a life-shattering MND diagnosis. 'At a time when I'm supposed to be there for mum and dad, they're the ones worrying about us. It's not right.' Through tears Fiona added, 'She should be my priority, not this. My mum is non-vocal now and is really struggling. My dad is broken by it all. I'm trying to be there for them, and doing all I can, but it's all so overwhelming. 'All we wanted was to get married, settle down and enjoy family life with my parents, and Ricky's wider family too. That's not a lot to ask. 'It breaks my heart to know we are the reason so many family members are worried and concerned.' For Ricky, who was raised in Torry, there's understandable anger. 'The council and the government can always find money for what they want to find money for. It's just another blow to Torry. 'They built these houses, and they sold them. I think what gets me is that they don't seem to care that our lives will never be the same if we leave this process with 10s of thousands of pounds of debt. 'We don't care if it was a previous council, or an old government. We are here NOW, and we need help. The homeowners can't do this without support.' Aberdeen family's 'frustrating' Raac limbo: 'We accepted an offer last year and heard nothing since' Torry Raac: 'They decided our fate while scrolling on their phones' Exclusive: We put Aberdeen City Council co-leader in the hot seat over Raac
Sky News
21-05-2025
- Business
- Sky News
Money Problem: How to challenge your council tax band - and the big risk that will infuriate your neighbours
Why you can trust Sky News Every Tuesday our Money blog team answers your Money Problems. You can email yours to moneyblog@ Today we are tackling this one sent to us by Dan... I've jumped from Band B to Band E council tax band - my neighbours with similar or bigger houses are mostly D. I've appealed the decision as I've just bought the property but what would the criteria be for my band to be revised? Thank you for the question. There are clear structures in place allowing people to challenge their council tax band - but it comes with risks. What are the grounds for an appeal? Let's start by looking at why people can challenge their band if, like you, they're in England or Wales (people in Scotland can find out how to challenge via the Scottish Assessors Association here)... The Valuation Office Agency (VOA) for England and Wales accepts appeals on the following grounds: Your house has been overvalued - you'll need proof here, such as the sale price; Like in your case, neighbours with similar or bigger homes are in lower bands; There's been a change to the property (ie some of it has been demolished or it's been converted into flats), or the surrounding area since the original valuation; You haven't extended your home, or made significant improvements, that would justify a band shift; The valuation is wrong due to a legal decision on another property; The property details are wrong or incomplete. How to gather evidence The first thing to do is check what band your neighbours with similar properties are in. You could ask them or check the VOA or SAA websites. You then need to look at the valuation. Your council tax band is based on your property's value in 1991 in England and Scotland, and 2003 in Wales - and you'll need to gauge this even if your property wasn't built at the time. These valuations were hardly robust - how do you value every home in a country at speed? - hence why people still often find themselves in an incorrect band. There are a few steps to this. First, if you've just bought the house, you have an up-to-date valuation - or you get information from sites such as Rightmove and Zoopla. Once you have an idea of the current valuation, you can use tools such as the Nationwide House Price Calculator to discover the valuation in 1991 or 2003. Which band does this old valuation put you in according to this table... How to appeal If you think your original valuation is wrong, it's now time to go to the VOA or SAA to state your case. If you think your band has changed since the initial valuation, you need to go to your local council. Making improvements to your property won't increase your council tax - but the band could change upon sale. This can also happen if the property is subject to a new lease for more than seven years. Top tip: you can check if a home you are buying is pending a band review on the VOA's council tax list. Helpfully, the government website has a step-by-step guide to appealing in England and Wales here. Risks You could lower your band through a review - but Dan and others beware: assessors could also find your property, and potentially those of your neighbours, are undervalued. Your council tax bill(s) would then go up. This feature is not intended as financial advice - the aim is to give an overview of the things you should think about.
Wales Online
21-05-2025
- Business
- Wales Online
Mark Drakeford announces plans to change business rates in Wales
Mark Drakeford announces plans to change business rates in Wales Wales' finance minister wants to change the way rates are calculated depending on the size of the business Mark Drakeford in his last First Minister's Questions in the chamber (Image: Welsh Government ) Mark Drakeford has announced proposals for changes to business rates in Wales. Under the plans, which people can have their say on until August, he wants to change the way rates are calculated depending on the size of the business. Business rates are charged on most non-domestic properties like shops, offices, pubs, warehouses, factories, and holiday rental homes or guest houses. Business rates are based on a property's '"rateable value" which is calculated by the Valuation Office Agency and is an estimate of how much it would cost to rent a property for a year. The rateable value is multiplied by the current non-domestic rates "multiplier". For our free daily briefing on the biggest issues facing the nation sign up to the Wales Matters newsletter here. Following a new law being passed in 2024 the Welsh Government can introduce differential multipliers for Wales using regulations. It is now consulting on proposals to introduce a lower multiplier for small-to-medium-sized retailers and introduce a higher multiplier for high-value properties. The exact rates will be set during the Welsh Government's budget planning for 2026-27. In his statement explaining his plan Wales' finance minister Mr Drakeford said: "The multiplier is a key determinant of the bills for individual ratepayers and, in turn, the total amount of revenue raised from non-domestic rates to support vital public services. Article continues below "Differential multipliers provide an opportunity to permanently re-balance relative liabilities across different parts of the tax-base without changing total revenue." The proposal is for small-to-medium-sized retail shops – those with rateable values below £51,000 – to be changed first. He said giving them lower rates was a way to limit the challenges they are facing from online retailers. It could benefit around 13,000 retail properties across Wales, according to the Welsh Government. "It would be intended to help re-balance the non-domestic rates system in favour of retail shops to support the ongoing viability and sustainability of the sector," Mr Drakeford said. It also wants to introduce a higher multiplier for properties with a rateable value of more than £100,000 to make up the money lost by helping smaller businesses. Mr Drakeford said as far as possible the higher multiplier would not be intended for properties occupied by public sector bodies or other institutions or those in, for example, the health and education sector. Mr Drakeford said: "The first use of any new powers will highlight practical considerations which inevitably arise in implementing innovative policy action. This relatively modest proposal will allow these matters to be identified and resolved, laying the ground for further reform in the future." Article continues below If they are pursued the proposals will come into force on April 1, 2026. The consultation, available online, is running for 12 weeks until August 12, 2025.
BBC News
14-05-2025
- Business
- BBC News
Botley Road businesses being 'supported', says Network Rail
Businesses that have been affected by the extended closure of a major route in Oxford will be supported by Network Rail, it has Road has been closed since April 2023 as part of a £161m project to upgrade Oxford Station and is expected to reopen in August month, five businesses affected by the closure stopped paying their business rates and said they would not pay them until they received further financial a statement, Network Rail said it was providing businesses with "independent, tailored advice" to apply for a reduction in their rates. "We continue to work with local businesses and government stakeholders on ways we can provide support within the constraints of being a public body and regulations for managing public money," the spokesperson said. In a letter last week addressing concerns raised by Oxford East MP Anneliese Dodds, the rail minister, Lord Hendy, said the government was "working hard with Network Rail to finalise a solution" for businesses on and around the Botley Network Rail spokesperson said it was "continuing our regular engagement with these businesses and are providing independent, tailored advice for their business rate applications to the Valuation Office Agency".Business rates are collected by Oxford City Council on behalf of the government, which set the rates and keep most of the income. Decisions over changes to business rate charges are made by the Valuation Office Agency (VOA).A spokesperson for the VOA said although it could not comment on individual cases, it was "engaging with local businesses and other partners affected by the ongoing works around Botley Road"."Where customers have applied for a reduction in their rateable value we'll always look to progress cases as quickly as possible," the spokesperson added. Local business owners have previously they could not "sustain" the losses inflicted by the closure "indefinitely".Zack Iqbal, owner of First Stop Spanner Works, told the BBC it was like "this section of Oxford is closed for business, closed for residents, and just basically shut off from the rest of the world".Tom Rainey, who owns The Porter House restaurant and hotel and The Punter pub, said they were "financially, 10% down".Mr Rainey is one of five business owners that stopped paying their rates, saying: "Not one person has offered us anything, and therefore we believe the only option is to make a stand."While he admitted it was "a bit extreme", he said: "If I end up with a jail term, then I would accept that". You can follow BBC Oxfordshire on Facebook, X (Twitter), or Instagram.
