How Non-Domestic Rates are Calculated

Rateable Value

Apart from properties that are exempt from Non-Domestic Rates, each non-domestic property has a rateable value set by the Valuation Office Agency (VOA), an agency of Her Majesty's Revenue and Customs. They draw up and maintain a full list of all rateable values.

This broadly represents the yearly rent the property could have been let for on the open market on a particular day.

  • until 31 March 2017, the rateable values were based on a valuation date of 1 April 2008
  • since 1 April 2017, the rateable values are based on a valuation date of 1 April 2015
  • since 1 April 2023, the rateable values are based on a valuation date of 1 April 2021

The valuation officer may alter the value if circumstances change. The ratepayer (and certain others who have an interest in the property) can appeal against the value shown in the list if they believe it is wrong.

Non-Domestic Rating Multiplier

The local authority works out the Non-Domestic Rates bill by multiplying the rateable value of the property by the appropriate multiplier. There are two multipliers: the standard Non-Domestic Rating multiplier, and the small business Non-Domestic Rating multiplier. The former is higher to pay for small business rate relief.

Except in the City of London, where special arrangements apply, the Government sets the multipliers for each financial year for the whole of England according to formulae set by legislation. Between revaluations the multipliers change each year in line with inflation and to take account of the cost of small business rate relief. In the year of revaluation the multipliers are rebased to account for overall changes to total rateable value and to ensure that the revaluation does not raise extra money for the Government.

For further information, please contact Revenues:

Contact: The Revenues & Benefits team

Last updated on 08/03/2024