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How are Business Rates calculated?

The amount you pay is based on multiplying the rateable value of your property by the National Non-Domestic Rating Multiplier (the annual rate in the pound)

The rateable value of each non-domestic property is fixed by an independent valuation officer from the Valuation Office Agency (VOA).

Since 1990 all non-domestic properties have been revalued every five years, with the current valuation having been effective from 01 April 2010.  Five yearly revaluations make sure each ratepayer pays their fair contribution and no more, by ensuring that the share of the national rates bill paid by any one ratepayer reflects changes over time in the value of their property relative to others. The next revaluation that was due to have been from 01 April 2015 has now been postponed until 01 April 2017.

The rateable value of a property broadly represents the yearly rent the property could have been let for on the open market on a particular date. For the 2010 revaluation this date was set as 1 April 2008.

The National Non-Domestic Rating Multiplier for each financial year is set by central Government. Since the introduction of Small Business Rate Relief in April 2005 there have been two multipliers for each year, the standard Non-Domestic Multiplier and the Small Business Multiplier.

The multipliers from 2005 onwards are;

YearNon-Domestic MultiplierSmall Business Multiplier
2005/0642.2 pence41.5 pence
2006/0743.3 pence42.6 pence
2007/0844.4 pence44.1 pence
2008/0946.2 pence45.8 pence
2009/1048.5 pence48.1 pence
2010/1141.4 pence40.7 pence
2011/1243.3 pence42.6 pence
2012/1345.8 pence45.0 pence
2013/1447.1 pence46.2 pence
2014/1548.2 pence47.1 pence

The multiplier changes each year in line with inflation. The Retail Price Index increase in 2014-15 will be capped at 2% instead of 3.2%.

Rateable Values can increase or decrease substantially following a revaluation. Transitional Relief helps to phase in the effects of large increases or decreases in rateable value between revaluations by limiting the amount by which your rates bill can change each year. You can find out more about Transitional Relief here.

You can check your rateable value or lodge an appeal on the Valuation Office Agency website.