If you’ve been considering installing a mezzanine floor in your warehouse, factory, office, or shop floor, you may be wondering how it will impact the rateable value of your property. In this blog post, we cover if and how your rates will be affected by installing a mezzanine floor.
As a business owner, you know the importance of keeping expenses low. The lower your business rates, the more money you can invest into running and growing your company.
If you’ve been considering installing a mezzanine floor in your warehouse, factory, office, or shop floor, you may be wondering how it will impact the rateable value of your property.
In this blog post, we cover if and how your rates will be affected by installing a mezzanine floor.
What Determines Your Property’s Rateable Value?
The rateable value of your commercial property is used to determine the business rates you pay. It is assessed by the Valuation Office Agency (VOA), which is part of HMRC.
Your property’s rateable value is based on an evaluation of the yearly rent the property would provide if it was let on the market at a fixed valuation date. The VOA changes the rateable value of business properties to reflect shifts in the overall property market, typically every five years.
Will a Mezzanine Floor Increase Your Rates?
There is no hard and fast rule to whether a mezzanine floor will increase your business rates or not. The main factor determining this lies in the floor’s purpose and construction.
If you install a lightweight, freestanding mezzanine floor that is primarily used for warehouse or storage purposes, it will usually be considered a non-permanent structure. This means it is unlikely to increase the rateable value of your property. On the other hand, should the floor be further developed after installation – by turning it into a lounge or workspace, for example – it may be considered a permanent fixture of the premises. The VOA may then decide to increase your rates as a result.
That said, even if the floor is judged to have added permanent value to the building, it doesn’t necessarily mean you’ll be charged a higher rate. This is because the added value rarely exceeds the capital cost.
Ultimately, whether your rateable value will be affected or not depends on a variety of factors. The best way to find out for certain is to reach out to a reputable mezzanine flooring company, who can give you advice for the specific floor you had in mind.
First Floors is the leading UK manufacturer of high-quality mezzanine floors. We have over 30 years’ experience in the mezzanine flooring industry, and we can give you expert advice on choosing and installing a new floor for your business. Get in touch by calling us at 01789 764172 or by filling out our online form.
