The object of a Revaluation is to re-align the tax base with values then current in the property market, so the impact will vary, depending on property type and location. In areas and categories where there has been strong rental growth between 2003 and 2008, rateable values are likely to increase as a result of the Revaluation, with a consequent increase in rate bills.

For previous Revaluation, the government has introduced transitional adjustments limiting annual increases and decreases. The current regulations have been set with a view to removing transitional adjustments and these have been completely removed in Wales. There have been no announcements as yet on this issue.

The Revaluation process begins with the Valuation Office collecting information on its “rent return” forms. The issue of new forms is expected to continue as the Valuation Office prepares its evidence to defend the new valuations when they take effect in April 2010. Announcements on the Uniform Business Rate (tax rate) and the transitional scheme are planned for the end of 2008 with the draft rateable values will be available on the Valuation Office website.

The rateable values will be open for appeal from 1 April 2010 and businesses will need to consider whether appeals should be made. Appeals are made against the rateable value, not the rate bill and the potential for reducing rateable values is not dependent on whether the valuation, or the bill, is increased or reduced from the preceding year.

Appeal regulations have differed for each Revaluation since 1990; however, the Government is pleased with the reduction in appeals on the

Revaluation and may seek to impose similar appeal regulations in the 2010 Revaluation, though a formal announcement is unlikely for some time.