Business Rates: Report a change with your business

There are some changes to your business that you'll have to tell the Valuation Office about. The sort of change the VOA needs to know about is called a 'Material Change in Circumstances' (MCC) and are usually major changes to your business property.

What type of physical change to a property could be an MCC?

The VOA will want to know about:

Part of your property being demolished
Extensions or internal alterations to your property
Any major structural alterations which are made to your property
A change of use of the property.

Examples of a change of use are if a shop becomes a public house, or an office above a shop is converted into a domestic flat.

Remember: although the VOA may accept that a change is a MCC, this won't automatically lead to a change to your rateable value (RV).

What other physical change to the property can affect the RV?

There are other changes to your property that can affect the RV, and which you should report to the VOA.

If part of your property has been split off so that it is (or could be) occupied by someone else or if you increase the size of your property by taking over another floor (directly above or below) in the building or possibly part of a building next door.

These physical changes are called 'reconstitutions' or splits and mergers.

For example, a company occupies a two-storey office building. The company decides to vacate the first floor and another company moves into the first floor. We would then split the assessment into two separate ones.

A couple of years later the company on the ground floor moves out completely, and the company on the first floor decides to take the ground floor as well. The two assessments would be merged into one.

Remember: When two premises are merged together the merged rateable value may increase above the small business rates relief threshold. This could mean that your bill increases by more than you expected.

How do I report a MCC to my property?

You should contact your local Valuation Office with details of your property and the possible change.

You will need to send supporting evidence. This will depend on the sort of physical change but good evidence will include:

Any change to your rental agreement which is a direct consequence of the physical change.
Any change to the level of your trade which is a direct consequence of the physical change.
Other relevant information such as work that has taken place and any planning applications.