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.
The amount you pay depends on your property's rateable value and where in the UK it is.
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. Pop-up shops and short-term spaces can be liable too.
How business rates are calculated
Your annual business rates bill is your property's rateable value multiplied by the multiplier, before any reliefs.
Your rateable value is set by the valuation body for your nation. 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 public. Check it online with the Valuation Office Agency (England and Wales), the Scottish Assessors (Scotland) or Land & Property Services (Northern Ireland).
Rateable values are reassessed periodically through revaluations to reflect changes in the property market.
Legal basis
Primary legislation and key regulations
Browse UK legislation (opens in a new tab) legislation.gov.uk