Guide

Understanding business rates

How business rates are calculated from your property's rateable value and the multiplier, including how rates differ across England, Scotland, Wales, and Northern Ireland.

Manufacturing & EngineeringRetail & Consumer Goods UK-wide

Business rates (also called non-domestic rates) are taxes on commercial properties in the UK. If you occupy a business property - whether you own it or rent it - you're usually responsible for paying business rates to your local council.

Understanding how business rates work is essential for budgeting and cash flow planning. The amount you pay depends on your property's rateable value and your location in the UK.

Who pays business rates

You must pay business rates if you:

  • Occupy commercial premises (shop, office, warehouse, factory, etc.)
  • Run a business from part of your home that's exclusively used for business
  • Own or lease non-domestic property that's not exempt

Business rates apply to most non-domestic properties including shops, offices, pubs, warehouses, factories, holiday rental properties, and agricultural buildings used for non-farming purposes.

How business rates are calculated

Business rates are calculated using a simple formula:

Rateable Value x Multiplier = Annual Business Rates Bill

Your rateable value is set by the Valuation Office Agency (VOA) in England and Wales, Scottish Assessors in Scotland, or Land & Property Services in Northern Ireland. It represents the annual rent your property could reasonably be let for on the open market.

The multiplier (also called the 'poundage') is set by government and varies by UK nation and property size.

Finding your rateable value

Your property's rateable value is publicly available and can be checked online:

Rateable values are reassessed periodically through revaluations to reflect changes in the property market.

Business rates relief schemes

Relief schemes that can reduce or eliminate your business rates bill, including small business rate relief, retail hospitality and leisure relief, empty property relief, and charitable rate relief across all UK nations.

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