How your business rates are calculated

Business rates are taxes paid on non-domestic properties to help towards the cost of local council services. They are also called non-domestic rates.

Rates are payable on non-residential properties such as:

• shops
• offices
• pubs
• warehouses
• factories
• holiday rental homes or guest houses
• storage containers

You can find more information on business rates on GOV.UK.

Rateable value

Rateable values are set by the Valuation Office Agency and are now revalued every 3 years.

The 2026 valuations come into effect from 1 April 2026 and are based on market values from 1 April 2024. Previously the 2023 valuations came into effect on 1 April 2023 based on market values from 1 April 2021.

The Valuation Office Agency decide and maintain all rateable values and add them to the non-domestic rating list.

Business rates calculations

We work out your business rates bill by multiplying the rateable value of your property by the appropriate multiplier.

The government sets the multipliers for each financial year for the whole of England by using a formula set by legislation.

Multipliers

For the 2026 to 2027 tax year there are 5 multipliers, including 2 lower rates specifically for qualifying retail, hospitality and leisure (RHL) businesses. These are:

• small RHL multiplier: 38.2p
• standard RHL multiplier: 43p
• small multiplier: 43.2p
• standard multiplier: 48p
• high value multiplier: 50.8p

Retail, hospitality or leisure businesses

For retail, hospitality or leisure businesses with a rateable value of:

• £50,999 and below, use the small RHL multiplier of 38.2p
• £51,000 up to £499,999, use the standard RHL multiplier of 43p

Check the guidance on what qualifies as a retail, hospitality or leisure business (GOV.UK).

All other businesses

For all other businesses with a rateable value of:

• £50,999 and below, use the small multiplier of 43.2p
• £51,000 up to £499,999, use the standard multiplier of 48p

High value businesses

Businesses with a rateable value of over £500,000 should use the high value multiplier of 50.8p regardless of whether they qualify as a retail, hospitality or leisure business.

The multipliers increase in line with inflation according to the Consumer Price Index in September of the following year.

Examples

Below are examples of how to calculate the basic business rates charge using each of the multipliers.

If your business has a rateable value of £10,000 your annual charge would be:

• £3,820 using the small RHL multiplier (10,000 x 0.382)
• £4,320 using the small multiplier for non-retail businesses (10,000 x 0.432)

If your business has a rateable value of £100,000 your annual charge would be:

• £43,000 using the small RHL multiplier (100,000 x 0.43)
• £48,000 using the standard multiplier for non-retail businesses (100,000 x 0.48)

If your business has a rateable value of £1,000,000 your annual charge would be:

• £508,000 using the high value multiplier (1,000,000 x 0.508)

Check further useful information and examples about calculating your business rates (GOV.UK).

Business rates relief

Your bill may be reduced if your property is eligible for business rates relief.

Subsidy control 

The new UK subsidy control regime commenced from 4 January 2023.  

The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs.  

Public authorities giving subsidies must comply with the UK’s international subsidy control commitments. The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime. 

Further information about subsidy control can be found on GOV.UK.