Renting business premises
What to consider when renting commercial property.
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.
UK-wide
Guide summary
If you use a property for business in the UK, you must pay business rates to your local council. Your bill is based on your property's rateable value and a multiplier. Check your rateable value online and pay by the deadline.
- Pay business rates if you use a commercial property
- Calculate your bill: Rateable Value × Multiplier
- Check your rateable value on GOV.UK (VOA for England & Wales)
- Use different multipliers for retail/hospitality businesses
- New system starts 1 April 2026 with six multiplier bands
- Challenge your rateable value if incorrect
- Rates are reassessed every 5 years
- Next revaluation is 1 April 2026
On this page
UK-wide
Related guides in Tax & Finance
Business rates in Wales: relief schemes and how to claim
How business rates work in Wales, including the single multiplier, Small Business Rates Relief, Retail Leisure and Hospitality …
Claim Improvement Relief for business premises in Wales
How to claim Improvement Relief in Wales, which delays any business rates increase resulting from property improvements for …
Business rates relief schemes
Relief schemes that can reduce or eliminate your business rates bill, including small business rate relief, retail hospitality …
Challenging your business rates and revaluation
How to challenge your rateable value through the Check, Challenge, Appeal process, understand revaluation cycles across UK nations, …
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:
- England & Wales: Check the Valuation Office Agency (VOA) website at gov.uk/find-business-rates
- Scotland: Search the Scottish Assessors website at saa.gov.uk
- Northern Ireland: Use Land & Property Services at valuationservices.finance-ni.gov.uk
Rateable values are reassessed periodically through revaluations to reflect changes in the property market.