15th June 2023
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.
- From 1 April 2017, the rateable values are based on the valuation date of 1 April 2015
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 most recent revaluation came into effect in England and Wales on 1 April 2023, based on rateable values from 1 April 2021. 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 revaluation can be found at on the UK Gov.uk website.
A revaluation of business rates will no longer take place in 2021 to help reduce uncertainty for firms affected by the impacts of coronavirus. The revaluation has been re-scheduled to 2023.
Read the Get ready for revaluation in 2023 leaflet (PDF document) for more details.
For more details about revaluation visit the Gov.uk website.