Business Rates (also known as Non-Domestic Rates) are a tax payable for all occupied and some unoccupied business premises. Access the business rates explanatory leaflets and information about revaluation and transition

What are business rates?

Collected by local authorities, they are the way that those who occupy non-domestic property contribute towards the cost of local services. Under the business rates retention arrangements introduced from 1st April 2013, authorities keep a proportion of the business rates paid locally. This provides a direct financial incentive for authorities to work with local businesses to create a favourable local environment for growth since authorities will benefit from growth in business rates revenues.

The money, together with revenue from council taxpayers, the revenue support grant provided by the Government and certain other sums, is used to pay for the services provided by local authorities in your area. Further information about the business rates system, including transitional and other reliefs, can be viewed at gov.uk

How your business rates are spent

Please see the Downloads section to view the leaflets that would normally be included with your business rate bill, explaining where your money goes to. This includes details of the total cost of services including Police and Fire Authorities.

Revaluation

The Valuation Office Agency (VOA) assess the rateable value of non-domestic (business) properties. Local Authorities use the rateable value to calculate business rates charges.

The VOA reassesses and updates the rateable value of all non-domestic (business) properties - usually every 5 years. This process is called a Revaluation.

The latest revaluation came into effect on 1 April 2017. All properties have their rateable value assessed on an estimate of the annual rent payable. This treats the property as if it were available to let on the open market at a fixed valuation date of 1 April 2015. The next revaluation is due to come into effect on 1 April 2023.

To work out the annual business rates, we multiply the rateable value of the property by a ‘multiplier’ figure. This is set by Central Government effective from 1 April every year. The appropriate ‘multiplier’ is shown on the front of your business rates bill.

If you think your 2017 rateable value is incorrect, you can view, check and challenge the rateable value of your property on the VOA website.

If you are still not satisfied you can appeal with the VOA.

View, check or challenge your properties rateable value

If you need anything else, you can contact the VOA directly

The Multiplier

The government sets two multipliers each year - the Small Business Multiplier is for occupied premises with a rateable value of less than £51,000 that are not entitled to Mandatory relief. The Standard Multiplier is used for all other business premises.

Year

2022/
2023

2021/
2022

2020/
2021

2019/
2020

2018/
2019

2017/
2018

2016/
2017

2015/
2016

Small Business Multiplier

49.9

49.9

49.9

49.1

48.0

46.6

48.4

48.0

Standard Multiplier

51.2

51.2

51.2

50.4

49.3

47.9

49.7

49.3

 

Transition

As a result of the 2017 revaluation, you may find your bill has either increased or decreased.

Transitional arrangements help to phase in the effects of these changes. This is by setting limits that restrict changes in bills after a revaluation. Limits continue to apply to yearly changes until the true charge is reached.

You can find any transitional adjustments on the front of the rates bill.

Calculating transitional arrangement

To calculate the transitional arrangement in any year, we first look at the business rates payable from 31 March of the previous financial year. We also take into account the increase in the retail prices index.

The limit by which the business rates for a property may change depends on the size of the property:

  • Large Property - rateable value £100,001 plus
  • Medium Property- rateable value £20,001 to £100,000
  • Small Property - rateable value up to £20,000
The limits set for increases in business rates

Year

LARGE
More than £100,000

MEDIUM
More than £20,000 &
Less than or = to £100,000

SMALL
Less than or = to
£20,000

2017/18

42%

12.5%

5%

2018/19

32%

17.5%

7.5%

2019/20

49%

20%

10%

2020/21

16%

25%

15%

2021/22

6%

25%

15%

The limits set for decreases in business rates

Year

LARGE
More than £100,000

MEDIUM
More than £20,000 &
Less than or = to £100,000

SMALL
Less than or = to
£20,000

2017/18

4.1%

10%

20%

2018/19

4.6%

15%

30%

2019/20

5.9%

20%

35%

2020/21

5.8%

25%

55%

2021/22

4.8%

25%

55%

As the planned revaluation due in 2022 has been put back a year, the government has introduced a transitional scheme for 2022/23.
 
There will be no limits on bills decreasing.
 
For those with increasing bills:
Small properties are limited to an increase of 15%
Medium properties are limited to an increase of 25%
There is no limit to increases for large properties
 
If it is applicable to your property, it will automatically show on your bill.
For 2022/23 only, transitional relief is subject to Subsidy Control (this has replaced State Aid). If you have been given transitional relief on your property and believe you have already reached the allowance limits (approx. £343,000 over 3 years), please contact us to have it removed.

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