How is it calculated?

Your local authority calculates your business rates bill by multiplying the rateable value of your property by a factor set by central government (expressed as pence in the pound). This is known as the multiplier, or Uniform Business Rate (UBR). For example, in 2005/06 the UBR is 42.2p (for rateable values of £15,000 and over outside Greater London). So, if the rateable value of your property is £15,000, your local authority would multiply it by 42.2p to get a total payable for the year of £6,330, before any rate relief is applied.

 

Every five years the Valuation Office Agency carries out a revaluation of all business properties – the next one will come into effect on 1 April 2005. Any rise in your rateable value at revaluation does not necessarily mean your rates bill will rise too. This is because the multiplier is adjusted to make sure the total amount raised from ratepayers stays the same after allowing for inflation.

 

On the other hand, if your rates bill does rise significantly at revaluation, you may be protected by transitional arrangements. These limit the percentage by which a rates bill can increase or decrease in a single year.

 

Your local authority calculates the amount you should pay in business rates, adjusted to include any relief or transitional adjustment that you are entitled to.