Business Rates - Don't own an airport!
Discussion
Was checking the business rates valuations for some of our sites, just to see how drasticly they have gone up this year, average of 27% not great really but will just pass this cost onto the customer as businesses do.
Thought I would have a look at some meaty properties see what sort of rates valuations they have these days, appreciate the figure quoted isn't their bill. But as an example, our bill is 55% of the rated valuation.
Started with Harrods:
https://www.tax.service.gov.uk/business-rates-find...
£18million, nice but see it is nearly 50% down on previous years.
Then though, how about Heathrow airport...... holy s
t!!!!!
https://www.tax.service.gov.uk/business-rates-find...
What on earth has happened there!
Thought I would have a look at some meaty properties see what sort of rates valuations they have these days, appreciate the figure quoted isn't their bill. But as an example, our bill is 55% of the rated valuation.
Started with Harrods:
https://www.tax.service.gov.uk/business-rates-find...
£18million, nice but see it is nearly 50% down on previous years.
Then though, how about Heathrow airport...... holy s
t!!!!!https://www.tax.service.gov.uk/business-rates-find...
What on earth has happened there!
Surrounded by motorways, excellent rail and tube links, big site in West London, you could build thousands of homes there after the Greens get flying banned, land will be worth a fortune!
In all seriousness, it wouldn’t be a surprise if a calculation like that (however unrealistic) had been used to calculate the value of the site.
Bizarrely though, London City Airport is apparently only rated at £10.4m, would have thought its location near Canary Wharf would have pushed its value up though, IIRC, it’s mainly residential and Newham College around about it, with ExCeL to the west over the bridge.
In all seriousness, it wouldn’t be a surprise if a calculation like that (however unrealistic) had been used to calculate the value of the site.
Bizarrely though, London City Airport is apparently only rated at £10.4m, would have thought its location near Canary Wharf would have pushed its value up though, IIRC, it’s mainly residential and Newham College around about it, with ExCeL to the west over the bridge.
First of all airports do not pay the Rateable value but the payable business rates are p in the pound.
The rv is the hypothetical amount that the property will let for on a hypothetical basis.
Airports are valued, I am told on a receipts basis also known as the profits method.
The Valuation date for the current rating list is 1st April 2021. Airports were still hampered by Covid at that point
The new list valuation date is 1st April 2024 when airports were well into recovery..
The increase only looks so high because the original value was so low.
The rv is the hypothetical amount that the property will let for on a hypothetical basis.
Airports are valued, I am told on a receipts basis also known as the profits method.
The Valuation date for the current rating list is 1st April 2021. Airports were still hampered by Covid at that point
The new list valuation date is 1st April 2024 when airports were well into recovery..
The increase only looks so high because the original value was so low.
alangla said:
Bizarrely though, London City Airport is apparently only rated at £10.4m, would have thought its location near Canary Wharf would have pushed its value up though, IIRC, it s mainly residential and Newham College around about it, with ExCeL to the west over the bridge.
The footprint of City Airport is tiny, though. You could probably fit all of it, including the runway, inside Heathrow's T5 building.You cannot create wealth by taxing everyone to death. Its bonkers.
One of our local holiday parks has received notice their Rateable Value is going to rise from £2.1m to £7.8m, I wouldn't be surprised if they just close down.
This crazy policy of economic cannibalism has echoes of ancient Easter Island - the locals cut down all the trees on the island then became extinct.
One of our local holiday parks has received notice their Rateable Value is going to rise from £2.1m to £7.8m, I wouldn't be surprised if they just close down.
This crazy policy of economic cannibalism has echoes of ancient Easter Island - the locals cut down all the trees on the island then became extinct.
alangla said:
Surrounded by motorways, excellent rail and tube links, big site in West London, you could build thousands of homes there after the Greens get flying banned, land will be worth a fortune!
In all seriousness, it wouldn t be a surprise if a calculation like that (however unrealistic) had been used to calculate the value of the site.
Bizarrely though, London City Airport is apparently only rated at £10.4m, would have thought its location near Canary Wharf would have pushed its value up though, IIRC, it s mainly residential and Newham College around about it, with ExCeL to the west over the bridge.
You are correct about the location and surroundings. In all seriousness, it wouldn t be a surprise if a calculation like that (however unrealistic) had been used to calculate the value of the site.
Bizarrely though, London City Airport is apparently only rated at £10.4m, would have thought its location near Canary Wharf would have pushed its value up though, IIRC, it s mainly residential and Newham College around about it, with ExCeL to the west over the bridge.
Plenty of hotels too.
The general area around it has seen such neglect by Newham council it borders on criminal.
Oh, and citizen Kahn , who has moved city hall into Newham, to be with his cousin, the Mayor, hasn't put any of his pollution measuring equipment around the apart.
4 generations of my family have lived and worked around the immediate area, I will be the last, left already and really struggling to go back and sell my house. It's third world.
BuyaDuster said:
You cannot create wealth by taxing everyone to death. Its bonkers.
One of our local holiday parks has received notice their Rateable Value is going to rise from £2.1m to £7.8m, I wouldn't be surprised if they just close down.
This crazy policy of economic cannibalism has echoes of ancient Easter Island - the locals cut down all the trees on the island then became extinct.
Reeves actually said that putting NI up would make the business environment more stable... she couldn't run a teashop let alone a country.One of our local holiday parks has received notice their Rateable Value is going to rise from £2.1m to £7.8m, I wouldn't be surprised if they just close down.
This crazy policy of economic cannibalism has echoes of ancient Easter Island - the locals cut down all the trees on the island then became extinct.
StevieBee said:
alangla said:
Bizarrely though, London City Airport is apparently only rated at £10.4m, would have thought its location near Canary Wharf would have pushed its value up though, IIRC, it s mainly residential and Newham College around about it, with ExCeL to the west over the bridge.
The footprint of City Airport is tiny, though. You could probably fit all of it, including the runway, inside Heathrow's T5 building.The income is from landing fees and air side stuff but predominantly from rents, which will be structured as a base rent with a turnover top up.
If turnover increases for the tenant, rent increases too, so in turn does the rateable value.
It is all open to challenge, so Heathrow will have the likes of CBRE, JLL or KF acting for them, so it is not something they blindly accept from the VO.
BuyaDuster said:
You cannot create wealth by taxing everyone to death. Its bonkers.
One of our local holiday parks has received notice their Rateable Value is going to rise from £2.1m to £7.8m, I wouldn't be surprised if they just close down.
This crazy policy of economic cannibalism has echoes of ancient Easter Island - the locals cut down all the trees on the island then became extinct.
again another hospitality valued on profts, gone from covid restricted to a strong market.One of our local holiday parks has received notice their Rateable Value is going to rise from £2.1m to £7.8m, I wouldn't be surprised if they just close down.
This crazy policy of economic cannibalism has echoes of ancient Easter Island - the locals cut down all the trees on the island then became extinct.
surveyor said:
BuyaDuster said:
You cannot create wealth by taxing everyone to death. Its bonkers.
One of our local holiday parks has received notice their Rateable Value is going to rise from £2.1m to £7.8m, I wouldn't be surprised if they just close down.
This crazy policy of economic cannibalism has echoes of ancient Easter Island - the locals cut down all the trees on the island then became extinct.
again another hospitality valued on profts, gone from covid restricted to a strong market.One of our local holiday parks has received notice their Rateable Value is going to rise from £2.1m to £7.8m, I wouldn't be surprised if they just close down.
This crazy policy of economic cannibalism has echoes of ancient Easter Island - the locals cut down all the trees on the island then became extinct.
Suggests EBITDA of nearer 5m, so cap val of £50m plus. I think their PE owner can manage
But yeah, all part of the covid hangover after the big party everyone had in 2021
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