How is my Business Rates Bill Calculated?

The local authority works out the Business Rates by multiplying the rateable value of the property by the appropriate multiplier.  From 1 April 2012 there are two multipliers; the standard non-domestic rating multiplier and the small business non-domestic rating multiplier.  The former is higher to pay for small business rate relief.

The Government sets the multipliers for each financial year for the whole of England.  They normally change both multipliers every year in line with inflation and to take account of the cost of Small Business Rate Relief.

In the year of a revaluation, the multipliers are set at a level which will keep the total amount raised in rates after the revaluation the same as before, plus inflation for the year.

The annual bill will cover the period 1 April to 31 March and is payable in 10 or 12 monthly instalments on the 3rd of each month, from April through to March of  the following year, although ratepayers may make arrangements to pay at more frequent intervals if they wish. Alternatively, the bill may be paid in a lump sum (payable in April), or in two half-yearly instalments (payable in April and September).

If your rateable value changes during the year, or if other circumstances affecting the business change, a revised bill will be sent to you with new instalments if appropriate.

The relevant multipliers from 1 April 2000 to 31st March 2024 are available to view in the table below.

After each revaluation there is a period of transition. No bill is allowed to increase or decrease by more than a set percentage. Any property with a large increase or decrease in it’s rateable value will therefore come under the transitional relief scheme, which has the effect of phasing the valuation in over a period of time. If transitional relief applies to your rates bill, it will be applied automatically.

Certain types of business property do not attract Business Rates at all. These properties do not appear in the rating list. Examples of these are:

• Agricultural Land Agricultural Buildings
• Fish Farms
• Fishing Rights
• Places of Religious Worship (including church halls)
• Property belonging to Trinity House (lighthouses, buoys etc)
• Sewers and Property of the Drainage Authority
• Public Parks
• Property used for the sole use of Disabled Persons
• Property within an Enterprise Zone.

Business Rates legislation specifies several classifications of property which are exempt from paying rates when certain conditions apply, even though they appear in the rating list.

Unoccupied Properties

Unoccupied newly built properties or those where structural alterations or major repairs have taken place (these properties are exempt for up to 3 months from completion of work).

• Unoccupied business property (exempt for up to 3 months).
• Industrial business property (i.e. where no part has been constructed or adapted for the purpose of retailing goods or services).  This type of property can exempt for up to 6 months.
• Business properties where occupation is prohibited by law.
• Business properties where occupation is prohibited by action taken by the Crown or any local or public authority.
• Listed buildings (subject to a preservation notice under s.58 of the Town and Country Planning Act 1971).
• Ancient monuments (as scheduled under s.1 to the Ancient Monuments and Archaeological Areas Act 1979).
• Business properties with a rateable value of less than £2,900
• Unoccupied business properties where the owner is entitled to possession only in his capacity as the personal representative of a deceased person.
• Unoccupied business properties where the owner is subject to a bankruptcy order or a winding-up order under the Insolvency Act 1986.
• Unoccupied business properties where the owner is entitled to possession only in his capacity as a trustee under a deed of arrangement or as a liquidator under the Insolvency Act 1986.

Occupied Properties

• Agricultural land and buildings (eg arable, meadow or pasture ground; buildings used in connection with agricultural operations on the land and with the keeping and breeding of livestock).
• Fish farms.
• Fishing rights (where these are exercisable in a fishery which is regulated by specified legislation).
• Places of religious worship (where these belong to the Church of England or the Church in Wales. For other religions, the property concerned must be certified under the Places of Worship Registration Act 1855. This exemption includes church halls and similar buildings [provided they are used in connection with a place of public religious worship]).
• Trinity House property (eg lighthouses; buoys and beacons).
• Sewers and accessories (eg drains; sewers; manholes; ventilating shafts and pumps. The exemption does not apply to sewage farms or sewage disposal works).
• Property of Drainage Authorities.
• Parks (provided they are under the management of a relevant authority and are available for free and unrestricted use by members of the public).
• Property used for the disabled (eg properties providing facilities for the welfare and training of disabled persons).
• Air raid protection works (eg air raid shelters).
• Swinging Moorings (ie a buoy attached to an anchor which rests underwater).
• Road crossings over watercourses (eg bridges, viaducts or tunnels constructed to allow river crossings).
• Property within an Enterprise Zone.