How shops and high street businesses are valued for business rates
Find out how the Valuation Office Agency (VOA) calculates rateable values for shops and high street businesses.
Applies to England and Wales
How shops and high street businesses are valued
The Valuation Office Agency (VOA) usually uses the rental comparison method to value shops and other high street businesses, such as hairdressers and banks. We group similar properties into valuation schemes. We measure them using the net internal area (NIA) method. Find out more about the rental method, valuation schemes and NIA.
To value shops and other high street businesses, the VOA:
- gathers information about rents paid for a property and similar nearby properties
- analyses the information and works out a price per square metre for the property
We also consider:
- unusual shop shape
- additional window display frontages
- hard frontages on banks
- access issues
- split levels
- sales areas hidden by pillars
- toilets
Find out how to get help updating your shop or high street business’s property details.
Zoning retail properties
Zoning is a standard way of measuring retail premises for valuation purposes. The VOA uses it to apply the price per square metre to properties and calculate the rateable value. Zoning recognises that the front of the property nearest the display window is the most valuable part. We do not use zoning for all shops, for example large department stores and supermarkets.
We divide properties into zones that cover the width of a property, starting from the building line (the front of the property) and continuing until the entire depth of the space has been zoned.
The first zone is called Zone A. Zone A starts at the building line and usually goes back 6.1 metres (20 feet). The depth of the zones may be different depending on the property location. Zone A is the most valuable part of the property.
The next zone is Zone B, which is half the value of Zone A. The next zone is Zone C, which is half the value of Zone B. Any space after Zone C is called the remainder, which is half the value of Zone C. The zoned area will include any space created by using non-structural walls or partitions. Zoning patterns may vary depending on property type, location, and historical practice. Not all properties will have a Zone A, B, C and remainder.
Areas like storerooms or upstairs offices are included in a valuation and given a price per square metre but are not zoned. We do not include areas such as toilets, stairwells and cleaners’ rooms in the valuation.
Plant and machinery
Plant and machinery may be shown separately in the rateable value calculation and can include:
- heating
- sprinklers
- air conditioning
- cold stores