A business rates bill can be wrong before the rateable value is even considered. If the Valuation Office Agency (VOA) record describes the wrong premises, combines areas that should be separate or includes space you do not occupy, the assessment may be built on the wrong hereditament. Understanding how to identify hereditament errors is therefore a practical first step in checking whether your business rates liability is fair.
A hereditament is the unit of property shown in the rating list and used to calculate business rates. It may be a shop, office, warehouse, yard, workshop or another non-domestic property. In some cases, a single building contains several hereditaments. In others, physically separate areas can form one hereditament because of how they are occupied and used.
The detail matters. An inaccurate record can affect the rateable value, eligibility for relief and the amount appearing on your rates demand.
Start with the rating list, not the rates bill
Your local authority issues the bill, but the VOA maintains the rating list in England and Wales. Begin by comparing the entry in the relevant rating list with the premises your business actually occupies.
Check the address, property description, rateable value and the stated area. Do not assume a familiar address means the assessment is correct. Industrial estates, business parks and multi-let buildings are particularly prone to confusing unit numbers, old postal descriptions and records that have not caught up with alterations on site.
A useful approach is to place the rating record alongside your lease, site plan, floor plans, invoices for any separate units and photographs of the premises. The objective is simple: establish precisely what property is included in the assessment and whether that matches the legal and practical reality.
What counts as a hereditament error?
A hereditament error is not simply a rateable value that feels too high. It is an error in the identity, extent, description or treatment of the property being assessed. Some errors are obvious administrative mistakes. Others arise from complex occupation arrangements, building works or changes in the way a site is used.
The most common issues tend to fall into four areas:
- Wrong property or address: The entry may refer to the incorrect unit, retain a historic description or include an address that no longer reflects the premises occupied.
- Incorrect extent: The assessment may include floors, stores, yards, parking areas, mezzanines or ancillary accommodation that you do not occupy, or omit areas that should be assessed separately.
- Incorrect split or merger: Two occupiers may be shown under one hereditament, or one occupier may be charged across several entries where the property should be treated differently.
- Out-of-date physical details: Demolition, subdivision, access changes, refurbishment or a reduction in usable space may not have been reflected in the rating list.
Each case turns on its own facts. A separate storeroom, for example, is not automatically a separate hereditament. Its location, the rights held over it, how it is used and whether it is in the same occupation all need consideration.
Check occupation as carefully as the floor area
Occupation is central to rating. Ask who has exclusive possession of each part of the property, who controls access and whether a space is used in connection with the main premises.
This is particularly relevant where a landlord, tenant, licence holder or group company uses different areas of the same building. A unit may have been let to a new occupier, while the old rating entry remains in place. A landlord may retain a common corridor, loading bay or plant room. A business may occupy the main unit but not an adjoining yard shown within its assessment.
Group structures can add another layer of complexity. Two companies in the same group are separate legal entities, even where they share branding, directors or day-to-day operations. The occupation arrangements and documentation need to be reviewed rather than inferred from appearances.
Where premises are vacant, partly vacant or under redevelopment, record the dates carefully. The effect on rates can depend on the nature of the works, the state of the property and whether rateable occupation continues. A temporary lack of trading does not automatically mean the property should be removed from the rating list.
Measure the property, but understand the basis of measurement
Discrepancies in area are a frequent warning sign, especially after alterations or when plans have been prepared for a different purpose. Compare the areas in the rating entry with current plans and a physical inspection.
However, do not treat a difference in square metres as conclusive evidence of an error. Different property types are valued using different measurement conventions. Retail accommodation is commonly analysed by zone, offices and industrial space may be measured on a net internal area basis, and external land can be treated differently again.
The more telling question is whether the VOA has included the correct accommodation and measured it on the appropriate basis. A blocked-off rear section, low-height storage, unusable basement, inaccessible upper floor or removed mezzanine may have a material effect. Equally, an informal internal partition does not necessarily create a separate hereditament.
Look for events that should have changed the entry
The strongest cases often follow a clear change in circumstances. Think about what has happened at the property since the assessment was last reviewed: a lease surrender, a new letting, subdivision, extension, demolition, fire damage, flooding, loss of access or removal of part of the building.
Keep evidence from the time of the change. Dated photographs, contractor invoices, plans, correspondence with the landlord, handover documents and utility records can all help establish what was occupied and when. Evidence created long after the event can still be useful, but contemporaneous records are generally more persuasive.
Be precise about dates. A valid correction may not always take effect from the date you would expect, and rating procedures differ according to the list, the type of change and the location of the property. England and Wales have separate administrative processes, so a generic online checklist is not a substitute for advice on a live case.
Separate factual errors from valuation arguments
It helps to distinguish between two connected but different issues. A factual error concerns what property exists, who occupies it, its size, layout or use. A valuation argument concerns whether the rateable value properly reflects rental evidence and the relevant valuation assumptions.
Both can lead to an excessive liability, but they require different evidence. If a warehouse entry includes a yard that belongs to another occupier, the first task is to correct the extent of the hereditament. If the correct warehouse and yard are included but the rateable value appears too high compared with comparable property, the issue is likely one of valuation.
Do not overlook the possibility that both apply. An inaccurate description can mask a wider valuation issue, while a reduced area does not guarantee a proportionate reduction in rateable value. The valuation method, quality of the accommodation, location and comparable evidence all affect the outcome.
How to identify hereditament errors before making a challenge
Before taking formal action, build a short evidence file. It should explain what the VOA record says, what you believe is wrong and what documents support your position. A clear timeline is often more valuable than a large bundle of unfocused paperwork.
Check whether the entry has already been altered, whether another hereditament covers the disputed area and whether the change might affect reliefs or other parts of the assessment. For multi-property businesses, use a consistent review process across the portfolio. Repeated errors can arise where acquisitions, relocations or internal reorganisations have not been fully reflected in rating records.
There is also a commercial judgement to make. Not every minor description issue changes the bill, and a review can reveal information that affects the assessment in more than one direction. Where the financial exposure is significant, or the facts involve split occupation, complex leases or specialist property, professional rating advice can prevent a reasonable concern becoming an avoidable procedural problem.
When specialist support is worthwhile
A qualified rating surveyor can review the hereditament, inspect the property where required and assess whether the evidence supports a correction or challenge. They can also distinguish a genuine error from a point unlikely to change the liability, helping you focus time and cost where the potential benefit is real.
Get Your Rates Right.com supports commercial occupiers with rating reviews and formal appeal work, bringing RICS and IRRV expertise to cases across England and Wales. The aim is not to challenge every assessment, but to ensure the property on which you are charged is accurately recorded and fairly assessed.
If the rating entry does not match the property you occupy, do not wait for the next bill to confirm the issue. Check the facts, preserve the evidence and seek advice early enough to protect your position.
