Business Rates - 2010 revaluations

I wonder how many businesses realise that the Valuations Office Agency are starting the process of establishing the rateable values of for the 2010 valuations list for Business Rates. It will be the rents that businesses are paying now that will be used as the basis for the rateable values in two years time.

It must be said that this is the normal cycle for the agency, but isn't it just about right that just at the moment when landlords are likely to be easing rents to retain tenants that the current rents will be enshrined for five years as the basis for taxation. It will be interesting to see how the rateable values in 2010 compare to the rentals at that time - if the rentals fall then it will be worth challenging the valuations. It will be particularly necessary for retailers who, if Sir Stuart Rose is correct, will be at the height of a period of depression and suffering revenue slumps. It does make you wonder if this system is either fair or practical as a tax raising system.