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 current 2023 valuation came into effect on 1 April 2023 and was based on market values from 1 April 2021. Before this was the 2017 valuation which came into effect on 1 April 2017 and used market values from 1 April 2015.
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
There are 2 multipliers:
- standard non-domestic rating multiplier, used to calculate the charge for properties with a rateable value of £51,000 or above
- small business non-domestic rating multiplier, used to calculate the charge for properties with a rateable value of £50,999 and below
The standard non-domestic rating multiplier is higher than small business rate relief.
The multipliers increase in line with inflation according to the Retail Price Index in September of the following year. The government has frozen the multiplier for the 2021, 2022 and 2023 financial years due to the rising cost of living.
2021/22
Small: 49.9p
Standard: 51.2p
2022/23
Small: 49.9p
Standard: 51.2p
2023/24
Small: 49.9p
Standard: 51.2p
Examples
Below are 2 examples of how to calculate the basic business rates charge:
- national non-domestic charge for a premises with a rateable value of £100,000 using the multiplier 0.512 equals an annual charge of £51,200
- small business non-domestic charge for a premises with a rateable value of £15,000 using the multiplier 0.499 equals an annual charge of £7,485
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.