How business rates are calculated
Business rates are worked out by multiplying the ‘rateable value’ of your property (set by the Valuation Office Agency) and by the business rates multiplier (set by central government.)
What is rateable value?
The rateable value is assessed by the Valuation Office Agency which is an agency of HM Revenue and Customs. A property's rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date.
- Until 31 March 2017, the rateable values will be based on a valuation date of 1 April 2008
- From 1 April 2017, the rateable values will be based on the valuation date of 1 April 2015
Visit the Valuation Office Agency website to find out your rateable value or make an appeal. Visit the Valuation Office Agency website to find out about multipliers.
When are rateable values updated?
The Valuation Office Agency regularly reassesses and updates the rateable values of all business properties usually every 5 years. This is called a revaluation. The 2017 revaluation takes effect from 1st April 2017. This is done to maintain fairness in the system by redistributing the total amount payable in business rates, reflecting changes in the property market. Revaluation does not raise extra revenue overall.
More information on the 2017 revaluation can be found at on the UK Gov.uk website.