Business Rates explained
The Business Rate, or the National Non-Domestic Rate (NNDR), is a national tax based on properties or parts of properties not in residential use.
How Business Rates are calculated
The factors used to determine the Annual Rate Charge due on non-domestic premises, such as offices, shops, factories, warehouses are:
- The Rateable Value
- The Rate Multiplier
- Transitional relief or surcharges
- Any reliefs
Business Rates are not based on the profitability of an individual business.
Where Business Rates go
We collect in excess of £131 million in Business Rates, but only retain around 5 per cent to support our services.
View our budget report and budget book on the council finance page for more information.
We use the Rateable Value provided by the Valuation Office Agency (VOA) to work out your Business Rates bill.
The Rateable Value is reassessed every few years by the VOA and for most properties it represents an open market annual rent on a set date.
Rateable Values in the rating list in force from 1 April 2017 are using a rental valuation date of 1 April 2015 but physical factors affecting the property may alter that assessment. For the 2023 Rating List, the values coming into force on 1 April 2023 are using a rental valuation date of 1 April 2021.
Occupiers and owners have a right of appeal against their assessment.
The Rate Multiplier
The Rate Multiplier is set by the government each year and increases in line with inflation.
When a revaluation comes into effect, the Rate Multiplier is adjusted to keep the total amount of rates raised nationally the same as the preceding year, after allowing for inflation and anticipated losses from appeals against Rateable Values.
For 2020, 2021 and 2022 the multipliers are frozen at £0.512 (standard) and £0.499 for occupied properties with a Rateable Value below £51,000 (except Charities and CACSs).