Non-domestic rates are a means by which businesses and other occupiers of non-domestic property indirectly contribute towards the costs of the services provided by local authorities.
The follwing information provides an introduction to some of the issues that may affect you if you occupy non-domestic (business) premises. This includes properties occupied by organisations who do not operate in order to make a profit. The income from all non-domestic rates is paid into a national pool and redistributed between local authorities in proportion to their adult population. Domestic properties are subject to council tax.
There are four key organisations involved in local government finance and each has a separate responsibility. These are:
Communities and Local Government (CLG) / Welsh Assembly Government : responsible for setting the overall government policy on local taxation
Valuation Office Agency : an executive agency of HM Revenue & Customs responsible for assessing rateable values that are the basis for working out rates bills
Valuation Tribunal Service : an independent, judicial body that has the power to deal with appeals relating to non-domestic rating (and council tax).
Local (billing) Authorities : who are responsible for working out your rates bill, giving any reliefs that may be due and for collecting the money.
Rates are normally payable by the occupiers of business premises. These will usually be either the owner if he/she is the occupier of the property or the leaseholder.
If a property is empty, the owner or leaseholder will usually still pay rates after a period of exemption has elapsed. The period of exemption covers the first three months that the property is empty. For warehouses and industrial property, the exemption period is extended to six months.
Apart from those properties which are exempt from rates, each non-domestic property has a rateable value. The rateable value broadly represents the annual rent the property could have been let for on the open market on a particular date, on full repairing and insuring terms. For the current rating list, this date was set as 1 April 2003.
The rateable value is the VOA assessment of rental value on a fixed valuation date and subject to certain valuation assumptions laid down by Parliament. It may be different from the rent you actually pay for a number of reasons, for example your own rent was agreed at a different time.
The valuation date is fixed so that all properties are valued at the same point in time. This helps to ensure fairness for everyone.
No. Rateable values are a key factor in the calculation of business rates but they are not the rates bill. Local authorities are responsible for calculating actual rates bills and for collecting rates and will use the rateable value in working out how much you have to pay. The local authority will apply the multiplier, (a rate in the pound) to the rateable value and then deduct any reliefs that are applicable. In England the multiplier is set by the Communities and Local Government and in Wales the multiplier is set by the Welsh Assembly Government . In simple terms your rates bill is worked out as follows: (rateable value x multiplier) less any reliefs = rates bill.
The business multiplier for 2009/2010 is:
England - 48.5p in the pound
Small businesses in England* - 48.1p in the pound
All businesses in Wales – 48.9p in the pound
(*For England a small business = is one where the total rateable value is under £15,000 [under £21,500 in London.] Some businesses may be eligible for small business relief, which can affect the amount of rates that you pay.)
Example:
A property with a rateable value of £22,000 would be:
£22,000 x 0.485 = £10,670 less any reliefs that are applicable
In Wales this would be £22,000 x 0.489 = £10,758 less any reliefs that are applicable .
The local authority will also work out any transitional adjustment. The transitional adjustment limits the amount by which your rates bill changes following a revaluation. There is no transitional relief in Wales
I am interested in moving to new premises - can I find out what the rates bill is likely to be before I move in?
You can find out the rateable value of any business premises in a local authority area from the VOA's rating list. This is a public document and can also be viewed in the VOA offices, local authority offices and libraries. The property you intend to occupy may be in receipt of transitional or other reliefs. You can establish your rate liability by contacting the finance department of the local authority or by asking your solicitor to make enquiries.
If the property you are going to occupy is still under construction or is newly built it may not have been assessed yet for rating purposes and there will be no entry in the rating list. You can write to your local Valuation Office and request an estimate of the rateable value. You should give details of the address, the type of property, the internal measurements and any information concerning the rent which you have agreed to pay. The Valuation Officer will then endeavour to provide you with an estimate. Alternatively, you may wish to consult an independent adviser.
You may be liable to business rates on the proportion of your property used for business purposes.
You can make an appeal against your rateable value once you become the owner or occupier of the premises - this is known as making a ‘proposal’ to alter the rating list.’ You can obtain a proposal form from your local Valuation Office or you can make an appeal online either yourself or via an agent. If you decide to make a proposal the VOA will write to you or your agent to tell you when the VOA expect to begin discussions about your appeal. If the VOA cannot agree the matter between you or your agent your appeal can be heard by an independent Valuation Tribunal.
It is important to note that you have to pay rates on the basis of the rateable value shown in the rating list even if you have appealed against it.
BBC News - Home
The latest stories from the Home section of the BBC News web site.
2 - 'Hard days ahead' in Afghanistan
3 - Bee Gees' singer Robin Gibb dies
4 - Greens' concern for energy bill
5 - Italy quake victims given shelter
6 - England's 'poorest' in north-west
7 - Single 30% income tax rate urged
8 - UK childcare 'needs an overhaul'
9 - Mexican massacre suspect arrested
10 - Actress aids dementia awareness
11 - UK farmers enjoy boom in downturn
12 - Millions watch Pacific eclipse
13 - Clarke: PM has right to 'chillax'
14 - 'Ali G' town Staines changes name
15 - Swann bullish on England chances
16 - Lorenzo eases to win at Le Mans
17 - Daley wins gold ahead of Olympics
18 - Mix-up denies Ennis a hurdles PB
19 - London 'the biggest' Paralympics
20 - Yahoo sells half Alibaba stake
21 - Obama: EU 'must focus on growth'
22 - Cameron: Megrahi release 'wrong'
23 - Balls warns of cuts 'catastrophe'
24 - Calls to mental health lines rise
25 - Cheap dysentery drug 'promising'
26 - 'Minority language data is key'
27 - £9k fees 'to push debt up £100bn'
28 - China clears Google Motorola bid
29 - Pakistan restores Twitter access
30 - Arctic melt releasing ancient gas
31 - SpaceX aborts launch at lift-off
32 - Moffat to receive special Bafta
33 - Muse carry Olympic flame in Devon
34 - How do you insult someone legally?
35 - A Point of View: The European Dream Has Become A Nightmare
36 - Second man accused of stab murder
37 - 'No hope' of finding crew alive
38 - Lockerbie bomber Megrahi is dead
39 - Salmond: Remember Lockerbie dead
40 - Man charged with teenager murder
41 - Youth, 16, critical after attack
42 - War of words over police job cuts
43 - Melding reveals think-tank plan
44 - Sudan releases foreign nationals
45 - Bombs kill soldiers in Mogadishu
46 - North Koreans 'free Chinese crew'
47 - S Korea urges North on 'new path'
48 - Nationalist Nikolic in Serbia win
49 - Lone bomber sought in Italy blast
50 - Medina leads in Dominican poll
51 - Falklands War memorial unveiled
52 - Syria town shelling 'kills 34'
53 - IAEA chief 'positive' over Iran
54 - Facebook boss in surprise wedding
55 - China activist Chen lands in US
56 - Week in pictures: 12-18 May 2012
57 - Day in pictures: 18 May 2012
58 - In pictures: Monarchs at Windsor
59 - Hackney's 'beauty and ugliness'
60 - In pictures: Royals in North West
61 - In pictures: Olympic flame tours Greece
62 - Your pictures: Sailing
63 - Day in pictures: 17 May 2012
64 - VIDEO: House of Commons
65 - VIDEO: Vintage posters found in warehouse
66 - VIDEO: How world leaders watched Chelsea win
67 - VIDEO: Maldives' 'apocalyptic' waste island
68 - VIDEO: Bee Gees' singer Robin Gibb dies
69 - VIDEO: Deadly earthquake in northern Italy
70 - VIDEO: Party for victorious Chelsea team
71 - VIDEO: Olympic torch relay: Day two highlights
72 - VIDEO: Banksy 'marks Queen's Jubilee'
73 - What next if Greece quits the euro?
74 - Smaller engines drive petrol revival
75 - Jubilee: Your rights to a day off
76 - US love affair with British pop
77 - Mission, sort of, accomplished
78 - Cannes 2012: Reporter's Diary
79 - In pictures: Olympic torch relay day 2
80 - Al-Megrahi death on front pages
Prime Minister David Cameron believes the Greek elections amount to a referendum on Greece's membership of the euro, sources close to him say.
President Obama tells a Nato summit there are "hard days ahead" in Afghanistan as the alliance prepares to withdraw troops at the end of 2014.
Bee Gees' singer Robin Gibb has died aged 62 following a lengthy battle with cancer, his family say.
Environmentalists fear the UK government's draft energy bill to be published on Tuesday will end in a new "dash for gas".
Thousands of people left homeless by a powerful earthquake in northern Italy spend the night in shelters as aftershocks continue in the region.
Nine out of the ten poorest areas in England are in the north-west, a church charity survey shows.
A single 30% rate of income tax is needed in order to boost growth in the UK, according to a report by a campaign group and business leaders.
Childcare in the UK needs to be overhauled to make it more affordable, a report by MP Elizabeth Truss, for the CentreForum think tank, suggests.
The Mexican army says a leader of the Zetas drug cartel has been arrested for the killing of 49 people whose bodies were dumped by a roadside.
Carey Mulligan backs a call for dementia awareness as a poll highlights the impact on families and friends.
Britain's farmers say they are enjoying a boom despite the downturn, as a campaign to highlight their contribution to the economy is launched.
An annular eclipse, in which the Moon partially blocks out light from the Sun, has moved across east Asia and the western US.
A senior cabinet colleague defends David Cameron's work ethic after a book outlined weekend relaxations including tennis, karaoke and drinking wine.
The Surrey town of Staines officially changes its name to Staines-upon-Thames in an attempt to boost its riverside image.
Graeme Swann is optimistic about England's chances against the West Indies despite losing two late wickets on day four.
Jorge Lorenzo beats Valentino Rossi in France on a wet Le Mans track to go top of the MotoGP standings ahead of Casey Stoner.
Tom Daley marks his return to the scene of his first European title with a personal best score to seal his second continental crown in Eindhoven.
An organisational mistake at the Great CityGames in Manchester costs Jessica Ennis a personal best in the 100m hurdles.
With 100 days to go, organisers say the London 2012 Paralympics will be the "biggest ever", as tickets go back on sale.
US internet company Yahoo said it has reached a deal to sell part of its stake in China's biggest internet company Alibaba Group.
US President Obama wraps up a G8 summit saying that leaders agree economies must focus on jobs and growth to boost recovery.
David Cameron says Lockerbie bomer Abdelbaset al-Megrahi should never have been released from prison, while Scotland's First Minister Alex Salmond says the investigation will continue.
Labour's Ed Balls warns the world economy faces a "catastrophe" unless Germany abandons pressure on eurozone countries to cut public spending.
Mental health charities say they have seen a surge in calls to their helplines since the start of the recession.
A cheap drug, which is already prescribed for arthritis, could fight amoebic dysentery, according to researchers in the US.
Schools should keep detailed records of the languages spoken by ethnic minority pupils urges a report.
A study suggests public sector debt will be pushed up by £100bn over next two decades by higher university fees.
Chinese regulators approve Google's $12.5bn purchase of US phone maker Motorola Mobility, the final hurdle for the deal to go through.
Pakistani authorities restore access to the social media website Twitter after a brief ban for what officials called "offensive" content".
Scientists identify thousands of sites in the Arctic where methane stored for millennia is bubbling out, potentially accelerating global warming.
The US firm SpaceX aborts the lift-off of its Falcon rocket and Dragon ship to the International Space Station.
Doctor Who producer and Sherlock co-creator Steven Moffat is to receive a special prize at this year's Bafta TV awards, organisers announce.
Thousands turn out to see rock band Muse carry the Olympic flame in their home town of Teignmouth, on day two of the Olympic torch relay.
Campaigners want to overturn laws targeting "insulting words and behaviour". Just how safe is it to scorn others?
It may be time to give up on the European project in its current form, laments Will Self.
A second man is charged with the murder of a 40-year-old widower who was found stabbed to death in his Brighton flat.
Portland Coastguard say there is no hope that two fishermen missing off the Dorset coast since Thursday will be found alive.
Lockerbie bomber Abdelbaset al-Megrahi dies at home in Tripoli, nearly three years after he was controversially freed from a Scottish prison.
First Minister Alex Salmond says the victims of the Lockerbie bombing should be remembered, after the death of Abdelbaset al-Megrahi.
A 26-year-old man is charged with murder and attempted murder over a shooting in County Londonderry at the weekend.
A 16-year-old youth assaulted on the outskirts of north Belfast on Saturday remains in a critical condition in hospital.
The Home Office disputes claims that 1,600 police officers will be lost in Wales due to spending cuts.
Members from opposition parties in Wales and non-party activists are set to join forces for a policy think-tank, says Conservative assembly member David Melding.
Sudan releases four foreigners detained last month near in the disputed area near the border with South Sudan, officials say.
Somali government soldiers are among five people killed in two bomb attacks in the capital Mogadishu blamed on al-Shabab Islamist fighters.
The 29 Chinese fishermen and three boats seized in the Yellow Sea by unidentified North Koreans are free and have arrived in China, reports say.
South Korea urges North Korea to follow a 'different path to peace' at the start of talks with the US and Japan, amid fears of a third nuclear test.
Nationalist Tomislav Nikolic is elected president of Serbia beating incumbent Boris Tadic in a run-off vote, and vowing to stay on the EU path.
A bomb that killed a girl outside a school in southern Italy was probably planted by a single person rather than the mafia, a prosecutor says.
Partial results in the Dominican Republic's presidential election put the candidate of the governing party, Danilo Medina, in the lead.
A service has taken place to dedicate a new memorial at Britain's National Memorial Arboretum to the Britons who died in the Falklands War.
Shelling by Syrian forces kills 34 people, according to the British-based group the Syrian Observatory for Human Rights.
IAEA head Yukiya Amano arrives in Tehran voicing optimism about reaching agreement on Iran's controversial nuclear programme.
Facebook founder Mark Zuckerberg ends a hectic week by getting married to long -time girlfriend Priscilla Chan in a surprise ceremony at his home.
Chinese activist Chen Guangcheng arrives in New York, after his escape to the US embassy in Beijing last month sparked a diplomatic crisis.
News photos from around the world
24 hours of news photos: 18 May
The world's monarchs gather at Windsor Castle
A photographer's view of Hackney
Queen's visit to Cheshire and Merseyside
Olympic flame tours Greece
Readers' photos on the theme sailing
24 hours of news photos: 17 May 2012
MPs have put questions to Energy and Climate Change Secretary Ed Davey and his ministerial team.
The Royal Society for the Prevention of Accidents has discovered a host of vintage health and safety posters from the 50s, 60s and 70s in a warehouse.
Millions of football fans around the world watched Chelsea's dramatic Champions League triumph over Bayern Munich on Saturday night, including world leaders gathered for the G8 Summit at Camp David.
Although the Maldives are known as an unspoilt tourist paradise, the islands struggle with managing their waste, as the BBC discovered on a visit to an 'apocalyptic' island waste dump.
A look back at the life of Bee Gee Robin Gibb, founder member of one of the most commercially successful bands of all time.
A magnitude 6.0 earthquake in northern Italy kills at least six people, causing serious damage to buildings in several towns.
Tens of thousands of fans have taken to the streets of west London to welcome home Chelsea's Champions League-winning squad.
Thousands of people turned out to see rock band Muse carry the Olympic flame in their Devon hometown on the second day of the torch relay.
Andrew Marr and experts ask if the graffiti artist Banksy's latest offering ahead of the Queen's Diamond Jubilee means he is as radical as ever.
What happens if Greece quits the euro?
How smaller engines are driving a petrol revival
What are you your rights to take Jubilee Day off?
Why the US is falling in love again with British pop
Mission, sort of, accomplished
How did Pete Doherty's acting debut go down at the festival?
Crowds and cheers as Olympic torch heads for Exeter
Al-Megrahi death on front pages
