How are business rates calculated? - Rates Wiki | Altus Property Services

How are business rates calculated?

Business rates, or non-domestic rates, are a tax on property used for business purposes.

Business rates are calculated using the property’s ‘rateable value’ (RV). This is an estimate of its open market rental value on 1 April 2015. The current Rating List was updated in 2017 and will next be updated in 2021, using open market rental values from 1 April 2019.

You can check your current rateable value on the Government’s business rates valuation page.

The RV of the property is multiplied by a multiplier, set by the Government on the first of April each year. The Government sets two multipliers: the Small Business Non-Domestic Rate Multiplier for small businesses and the Non-Domestic Rate Multiplier for other businesses. Small businesses are those with an RV below £51,000. The standard multiplier is used for businesses with an RV of £51,000 or more.

If you qualify for small business rate relief, the multiplier for 2018/19 is set at 48p for each pound. For all other properties, the standard multiplier is set at 49.3p per pound.

 

Year Standard multiplier Small business multiplier
2018 to 2019 49.3p 48.0p
2017 to 2018 47.9p 46.6p
2016 to 2017 49.7p 48.4p

 

There are different multipliers in Wales and the City of London.

Your bill will be reduced if your property is eligible for business rates relief. It may also be affected by transitional relief if your bill has changed by more than a certain amount.

Business rates are handled differently in Scotland and Northern Ireland.

 

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