Rates assistance for businesses impacted by COVID-19
The Finance Minister has announced a further £213 million of business rates support in addition to the emergency £100 million rates package to assist businesses impacted by COVID-19. Find out more about COVID-19: Emergency rates package for businesses.
When calculating business rates for licensed premises Land & Property Services (LPS) assess the Net Annual Value (NAV) by calculating the correct level of Fair Maintainable Trade (FMT). LPS do this by collecting information about rent, trading receipts and trading patterns. LPS analyse this information along with the type of premises, the area it is in and what services it offers.
As there is little evidence of rents for pubs LPS use FMT in the assessment to help assess a rateable value or NAV. This is industry standard and is the approach adopted across the UK.
LPS apply a percentage to the estimated FMT to assess the annual rent. It is based on factors such as, where the premises is located, the sort of premises they are (bar, hotel, etc.) and the sort of trade carried on. LPS regularly consult with the trade associations to ensure its approach continues to reflect how the licensed industry operates.
The short video below explains the revaluing process, known as Reval2020, and how LPS calculate business rates for licensed premises.