In England and Wales, the Valuation Office Agency ( VOA ) works out your rateable value based on the annual level of trade (excluding VAT ) that a pub is expected to achieve if operated in a reasonably efficient way. This is called 'fair maintainable trade' and it's based on: the type of pub or licensed premises.

What is fair maintainable operating profit?

An assessment of the fair maintainable trade (FMT) and fair maintainable operating profit (FMOP) that could be achieved at the property. ... To assess the market value of the property the FMOP is capitalised at an appropriate rate of return reflecting the risk and rewards of the property and its trading potential.

What is FMT in valuation?

The generally accepted approach to valuing trading businesses is the Profits Method – applying an appropriate multiplier to the Fair Maintainable Operating Profit; which in turn is derived from the Fair Maintainable Trade (or FMT).