How we calculate business rates
Where do my business rates go?
Central government sets the amount of rates you must pay each year.
From 1 April 2013, along with all other local authorities, we receive less government grant but keep about half of the business rates we collect locally, which provides a financial incentive to improve the local economy. The remainder continues to go to central government for re-allocation to local authorities through various grants.
How are my business rates worked out?
We work out your business rates bill by multiplying the rateable value of your property by the business rates ‘multiplier’.
You can estimate your business rates on the GOV.UK website
Rateable value
All non-domestic properties are given a rateable value by the Valuation Office Agency (VOA). From 1 April 2023, there will be a revaluation of all business rates every three years to reflect changes in the property market. On 1 April 2023, the new rating list came into effect and your bill will be based on this rateable value. Find out more about the 2023 revaluation.
The rateable value of the property is based on the yearly rent the property could have been let for on the open market on a particular date. From 1 April 2023, the rateable values are based on the valuation date of 1 April 2021.
The ratepayer and certain others who have an interest in the property can appeal against the value shown in the list if they believe it is wrong. For more information please see the appeals and disputes page.
The business rates multiplier
Each year the government sets a multiplier, which represents the number of pence in each pound by which the rateable value is multiplied to arrive at the amount of business rates payable for the year.
The government reviews the multiplier each year to reflect changes in inflation.
The small business rates multiplier is used for most occupied properties with a 2023 rateable value below £51,000. For all other properties the standard multiplier is used.
Business rates multipliers for the financial years 2021/22, 2022/23 and 2023/24
| Rateable value of property | Multiplier |
|---|---|
| Standard rate | 51.2p in the £ |
| Small business rate | 49.9p in the £ |
Transitional rate relief
All rateable values are reassessed every three years at a general revaluation. On 1 April 2023, the new rating list came into effect and your bill will be based on this rateable value.
Property values normally change a good deal between each revaluation, so transitional relief arrangements help to phase-in the effects of these changes on ratepayers’ bills. Large rises are restricted so businesses are not suddenly asked to pay much larger amounts.
We will automatically include transitional relief when we calculate your bill. It is shown on the bill as ‘Transitional Adjustment’.
Transitional relief limits the percentage your business rates bill can be increased each year following revaluation. The transitional relief will apply each year until the full amount is due and your bill reaches what your full bill should be, or there is another revaluation.
More information on transitional rate relief is available on the GOV.UK website.