Non-Domestic Rates 2025/26
Non-Domestic Rates, known as business rates, are collected by local authorities.
They contribute towards the cost of local services.
Under the business rates retention arrangements, authorities keep part of the business rates. This money with revenue from council taxpayers, generates income and grants from central government. It is used to pay for the services provided by local authorities in your area. Further information about the business rates system.
Business Rates Instalments
Instalments of business rates bills are automatically set on a 10-monthly cycle. The Government has put in place regulations that allow ratepayers to make payments over 12 monthly instalments.
National Non-Domestic Rating Multiplier
The business rates bill is from multiplying the rateable value of the property the appropriate non-domestic multiplier.
There are two multipliers:
- the standard non-domestic rating multiplier
- the small business nondomestic rating multiplier.
The Government sets the multipliers annually.
Those eligible who occupy a property with a rateable value of less than £51,000, will have their bills calculated using the lower small business non-domestic rating multiplier.
To be eligible, you will not be entitled to certain other mandatory reliefs, nor liable for unoccupied property rates.
Both multipliers are based on the previous year’s multiplier, adjusted to reflect the Consumer Price Index (CPI) inflation figure, for the September prior to the billing year. Unless a lower multiplier is set by the Government. The current multipliers are shown on your bill.
Rateable Value
Apart from properties that are exempt from business rates, each non-domestic property has a rateable value which is set by the Valuation Office Agency (VOA), an agency of His Majesty’s Revenue and Customs.
They maintain a full list of all rateable values. The rateable value of your property is shown on the front of your bill. This broadly represents the yearly rent the property could have been let for on the open market on a particular date specified in legislation. The current rating list was set 1st April 2021.
The VOA may change the valuation if circumstances change. The ratepayer (and certain others who have an interest in the property) may also check, and challenge the valuation shown.
Find information about the grounds on which challenges may be made.
Revaluations
All non-domestic property rateable values are reassessed at revaluations. The most recent revaluation took effect from 1st April 2023.
Revaluations ensure that business rates bills are up-to-date and accurately reflect current rental values and relative changes in rents. Frequent revaluations ensure the system continues to be responsive to changing economic conditions.
Business Rate Reliefs
Depending on individual circumstances, a ratepayer may be eligible for a rate relief (i.e., a reduction in their business rates bill). Find out more about available reliefs.
Temporary Reliefs
Some of the permanent reliefs are set out below, but other temporary reliefs may be introduced by the Government at a fiscal event. Contact us for details on the latest availability of business rates reliefs and advice on whether you may qualify.
Small Business Rates Relief
If a ratepayer’s sole or main property’s rateable value does not exceed a set threshold, a percentage reduction in their rates bill for the property may be eligible. This of up to a maximum of 100% while eligible properties above the lower threshold and below a specified upper threshold may receive partial relief.
The level of reduction depends on the rateable value of the property. For example, eligible properties with a rateable value below a specified lower threshold will receive 100% relief. The relevant thresholds for relief are set by the Government.
Generally, these percentage reductions (reliefs) are only available to ratepayers who occupy either:
- (a) one property
- (b) one main property and other additional properties providing those additional properties each have a rateable value which does not exceed the limit set by order.
The aggregate rateable value of all the properties mentioned in (b), must also not exceed an amount set by order. For those businesses that take on an additional property which would normally have meant the loss of small business rate relief, they will be allowed to keep that relief for a fixed additional period.
Full details on the relevant limits in relation to second properties and the current period for which a ratepayer may continue to receive relief after taking on an additional property can be found at GOV.UK Business Rates.
Certain changes in circumstances will need to be notified to the local authority by the ratepayer who is in receipt of relief (other changes will be picked up by the local authority). The changes which should be notified are:
- (a) the property falling vacant,
- (b) the ratepayer taking up occupation of an additional property, or
- (c) an increase in the rateable value of a property occupied by the ratepayer in an area other than the area of the local authority which granted the relief.
Charity and Community Amateur Sports Club Relief
Charities and registered Community Amateur Sports Clubs are entitled to 80% relief where;
- the property is occupied by the charity or the club and
- is wholly or mainly used for the charitable purposes of the charity (or of that and other charities),
- or for the purposes of the club (or of that and other clubs).
The local authority has discretion to give further relief on the remaining bill. Full details can be obtained from the local authority.
Transitional Rate Relief
At a revaluation, some ratepayers will see reductions or no change in their bill whereas some ratepayers will see increases.
Transitional relief schemes are introduced at each revaluation to help those facing increases. Transitional relief is applied automatically to bills.
Local Discounts and Hardship Relief
Local authorities have a general power to grant discretionary local discounts and to give hardship relief in specific circumstances. Full details can be obtained from the local authority.
Unoccupied Property Rating
Business rates are generally payable in respect of unoccupied non-domestic property.
However, they are generally not payable for the first three months that a property is empty.
This is extended to six months in the case of certain industrial premises, whilst certain other properties such as vacant listed buildings are not liable for business rates until they are re-occupied. To find out if your building is listed, please visit Search the List – Find listed buildings, monuments, battlefields and more | Historic England
Rate Relief for Businesses in Rural Areas
Certain types of properties in a rural settlement with a population below 3,000 may be entitled to full relief. The property must be the only general store, the only post office or a food shop and have a rateable value of less than £8,500, or the only public house or the only petrol station and have a rateable value of less than £12,500. The property must be occupied
Subsidy Control
The new UK subsidy control regime commenced from 4th January 2023.
The new regime enables public authorities, including devolved administrations and local authorities, to deliver subsidies that are tailored for local needs. Public authorities giving subsidies must comply with the UK’s international subsidy control commitments.
The subsidy control legislation provides the framework for a new, UK-wide subsidy control regime. Further information about subsidy control can be found on the gov.uk website.
Rating Advisers
Ratepayers do not have to be represented in discussions about the rateable value of their property or their rates bill.
However, ratepayers who do wish to be represented should be aware that members of the Royal Institution of Chartered Surveyors and the Institute of Revenues, Rating and Valuation are qualified and are regulated by rules of professional conduct designed to protect the public from misconduct.
Before you employ a rating adviser or company you should check that they have the necessary knowledge and expertise, as well as appropriate indemnity insurance. Take great care and, if necessary, seek further advice before entering any contract.
Information Supplied with Demand Notices
Information relating to the relevant and previous financial years in regard to the gross expenditure of the local authority is available Civic Budget Book page.
A hard copy is available on request by writing to the local authority or at 01474 33 77 00.