Business rates, or non-domestic rates, are a tax on the occupation of commercial property and other non-domestic property. The Local Government Finance Act 1988 introduced business rates in England, Wales and Scotland. Properties are assessed in a rating list with a rateable value. Rating Lists are created and maintained by the Valuation Office Agency, with a revaluation generally occuring every five years. A service charge is payable by a tenant for services provided by the landlord for the repair and maintenance of common parts, such as lifts, reception areas and the external structure of the building. The service charge usually includes managing agent’s fees. It is normally collected quarterly in advance, at the same time as the rent. A service charge payment can be capped in order to limit a tenant’s financial liability. The RICS has developed a Service Charge Code of Practice to improve standards and promote consistency, fairness, transparency and best practice in the management and administration of commercial property service charges.
What are business rates and service charges?
