How your Business Rates are worked out

The Council multiplies the rateable value of your property, which is set by the Valuation Office Agency, by a multiplier (the national non-domestic multiplier) which is set by central government. It is set for the whole of England and is effective from 1 April each year. The multiplier represents the number of pence in each pound of the rateable value that will be payable in business rates before any reliefs or discounts are applied. The calculation gives the amount of rates payable for the year.

The Government reviews the multiplier each year to reflect changes in inflation. By law, the multiplier cannot increase or decrease by more than the rate of inflation, except in the year of a revaluation. In that year it is set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for that year. The current revaluation took effect from 1 April 2023. Future revaluations will be carried out every three years.

The rateable value of a property is an assessment of the annual rent the property would rent for it it were available to let on the open market at a fixed valuation date. (This is known as the Antecedent Valuation Date or AVD).

• From 1 April 2017 rateable values were based on the valuation date of 1 April 2015.
• From 1 April 2023 rateable values are based on the valuation date of 1 April 2021

There are two multipliers for each year, the standard national Non-Domestic Multiplier (which applies to properties with a rateable value of £51,000 and above, empty properties and properties occupied by Charities) and the Small Business Multiplier (which applies to occupied property with a rateable value less than £51,000).

The multipliers from 2017 onwards are shown below

 * The Small Business multiplier has been frozen since 2020/21

If the rateable value of your property changes significantly as a result of the revaluation, the changes in your rates bill will be phased in. We will include any transitional phasing automatically when calculating what business rates you should pay. The amount of relief will be shown on your bill, and will continue to apply each year until the full amount becomes due.

There are limits on how much your rates can increase or decrease.

Transitional relief only applies to the rateable value that was effective from 01 April 2017. If your rateable value is increased with an effective date of after 01 April 2017, the increase in rates will not be subject to transitional phasing and will be payable at the full amount (rateable value multiplied by the rate in the pound).

If your rateable value has increased as a result of the 2017 revaluation, the maximum amount your bill can increase by each year is:

If your rateable value has decreased as a result of the 2017 revaluation, the maximum amount your bill can decrease by each year is:

The final figure will be adjusted by the annual rate of inflation.

This means changes to your bill are phased in gradually, if you're eligible.

From the 2023 to 2024 tax year you'll get transitional relief if your:

• property is in England
• rates go up by more than a certain amount

We will adjust your bill automatically if you're eligible.

How much your bill can change by

How much your bill can change by from one year to the next depends on both:

• your property's rateable value
• whether your bill is increasing or decreasing as a result of revaluation

You stop getting transitional relief when your bill reaches the full amount set by a revaluation.

The business rates year is from 1 April to 31 March the following year.

If your bill is increasing from 1 April 2023

If you've received a transitional certificate

The transitional certificate value will be used in the business rates calculation for your property instead of the usual rateable value.

If you disagree with the value of the certificate, contact the Valuation Office Agency (VOA).