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 - UN considers Syria crisis action
3 - Right-to-die case wins first step
4 - 'Horrific' cruelty farmer jailed
5 - Olympic ceremony 'Wonder' theme
6 - UK soldier killed in Afghanistan
7 - Spain jobless passes five million
8 - Brothers face decapitation charge
9 - 'Bullet' sent to QPR in the post
10 - US economic growth rate picks up
11 - Romney back into lead in Florida
12 - Man jailed over ricin recipe find
13 - Asteroid makes near-miss fly-by
14 - VIDEO: Child's toy launched into space
15 - Outrage at RBS boss's bonus deal
16 - Greece debt talks 'close to deal'
17 - Osborne unveils UK financial bill
18 - MPs 'have little to do' - Straw
19 - Babies' brains 'show autism risk'
20 - Government escapes NHS rebellion
21 - Tuition fees commission set up
22 - Lagging pupils 'don't catch up'
23 - Facebook clickjacking legal row
24 - Top Euro MP quits in piracy row
25 - 'Microplastic' threat to shores
26 - More uses for 'miracle material'
27 - Demi Moore 911 call tape released
28 - War Horse film boosts book sales
29 - The silence over gay footballers
30 - The castaway who annoyed Churchill
31 - Live - FA Cup fourth round
32 - Watford 0-1 Tottenham
33 - Everton 2-1 Fulham
34 - Gap closing on top three - Murray
35 - Panesar haul puts England on top
36 - Ex Villa player declared bankrupt
37 - Redknapp: 'I don't fiddle taxes'
38 - Accused 'can't remember killing'
39 - Bakery workers facing redundancy
40 - O'Hagan accused 'to help police'
41 - McNarry leaves UUP assembly group
42 - Warnings for pursuit death police
43 - Prop Thomas has heart operation
44 - Nigerian traders shot and burnt
45 - Anger at Congo parliament result
46 - France to resume Afghan training
47 - Tibetan 'dies in Sichuan unrest'
48 - Italian cruise firm offers payout
49 - Fitch downgrades Italy and Spain
50 - Nobel plea for Mexico journalists
51 - Funeral for Rio collapse victim
52 - Car bomb kills Baghdad mourners
53 - Bahrain criticised over tear gas
54 - Barefoot Bandit sentenced again
55 - Eleven hurt in US casino collapse
56 - Week in pictures: 21-27 January 2012
57 - Day in pictures: 27 January 2012
58 - In pictures: Rio de Janeiro building collapse
59 - Your pictures: Frozen
60 - In pictures: Alabama storms
61 - In pictures: Norman Parkinson
62 - Day in pictures: 26 January 2012
63 - Day in pictures: 25 January 2012
64 - VIDEO: House of Commons
65 - VIDEO: Inside the 2012 Olympic apartments
66 - VIDEO: Raised spirits on demolition site
67 - VIDEO: Homes for families of injured troops
68 - VIDEO: £80m police smart phone plan criticised
69 - VIDEO: Michael Jackson honoured in Hollywood
70 - VIDEO: CCTV cameras catch fish poachers
71 - VIDEO: Cricketer D'Oliveira remembered
72 - VIDEO: 'We should rebrand tax as charity'
73 - Davos 2012: Where to invest this year?
74 - Fascination with the 'Dutch godfather'
75 - How the Daily Mail stormed the US
76 - Quiz of the week's news
77 - The alternative map for 2012 visitors
78 - Helping families cope with scars of war
79 - Orchid's bloom captured on camera
Ministers and Labour clash over who is responsible for RBS chief executive Stephen Hester's contract, amid anger about a £963,000 share bonus offer.
The UN Security Council is considering a draft resolution against Syrian leader Bashar al-Assad, amid an upsurge in violence.
A man who is almost completely paralysed has won the first step in his legal bid to pursue his right-to-die.
A Nottingham farmer is jailed for a year after "horrific" scenes of animal cruelty were uncovered by inspectors on his property.
Danny Boyle reveals the London 2012 Olympics opening ceremony will be called Isles of Wonder, in an announcement six months ahead of the Games.
A British soldier has been shot dead while on patrol in the Helmand province of Afghanistan, the Ministry of Defence announces.
Spain's unemployment figure rose above the five million mark in the last quarter of 2011, official figures show.
Two brothers are charged with the murder of a man who was found shot, decapitated and burnt in Stockport.
Police are investigating after a "malicious communication" - reportedly containing a bullet - was sent to Queens Park Rangers' training ground.
The pace of US economic growth quickened to a 2.8% annualised rate in the three months to December, the Commerce Department says.
Republican presidential candidate Mitt Romney pulls away from his nearest rival Newt Gingrich, with a nine-point advantage in Florida's opinion polls.
A Bolton man is jailed for possessing a recipe for the deadly poison ricin and documents about how to make bombs.
An 11m-wide asteroid passed within 60,000km of Earth on Friday, making it one of the 20 closest recorded approaches to our planet.
While America is running down its manned space programme - further north - two Canadian students have shown that flying into space does not always have to be rocket science.
A £963,000 bonus in shares awarded to Royal Bank of Scotland boss Stephen Hester is strongly criticised by politicians and unions.
Greece could reach a deal with its creditors over the weekend, according to the EU's Economic Commissioner, Olli Rehn.
The Chancellor George Osborne has revealed details about the new Financial Services Bill that will overhaul regulation of the sector.
Jack Straw says there is so little government legislation for MPs to consider at the moment that ministers are having to "manufacture activity".
It may be possible to detect autism at a much earlier age than previously thought, say researchers.
The government appears to have escaped a rebellion by the medical establishment over its controversial NHS reforms in England.
An independent commission has been set up to examine the impact of increased tuition fees in England.
Just one in 15 pupils in England starting secondary school "behind" for their age, gets five good GCSEs, official data shows.
The social network and Washington State sue a marketing firm over claims that it deceived users by hiding 'Like' buttons. The firm denies the charge.
A European Parliament rapporteur has stood down in protest as a controversial anti-piracy agreement is signed by several countries.
Microscopic plastic debris from washing clothes is accumulating in the marine environment and could be entering the food chain, a study warns.
Graphene, often described as a "miracle material", can be used to distil alcohol, according to a new study in the Science journal.
Demi Moore suffered convulsions after smoking an undisclosed substance, according to a tape of an emergency call made on Monday.
Michael Morpurgo's novel War Horse has now sold more copies in the UK in a fortnight than it did worldwide in 25 years.
Amal Fashanu's uncle was Britain's only openly gay footballer. She tries to find the reasons behind 25 years of silence.
The first ever castaway on Desert Island Discs 70 years ago was a man who not only annoyed Winston Churchill but also earned Adolf Hitler's enmity.
A below-par Tottenham edge past Watford and Everton come from a goal down to beat Fulham in Friday's FA Cup fourth-round matches.
Watford dominate but Rafael van der Vaart's long-range strike ensures a happy end to the week for Tottenham boss Harry Redknapp.
Marouane Fellaini scores a second-half header as Everton come from behind to beat Fulham and earn their spot in the fifth round.
Andy Murray believes he is closing the gap on the world's best players despite losing an epic five-set Australian Open semi-final to Novak Djokovic.
Monty Panesar claims three wickets as England take a firm grip on the second Test against Pakistan on day three in Abu Dhabi.
The former England and Aston Villa footballer Lee Hendrie is declared bankrupt by the High Court.
Harry Redknapp told police he has paid "fortunes in income tax" and did not "fiddle anybody", a court hears.
The teenager accused of murdering Jack Frew tells a court he did "not recall stabbing him 20 times and slitting his throat".
A total of 135 bakery workers face redundancy with the collapse of Kingdom Bakers in Fife.
A man previously accused of murdering journalist Martin O'Hagan has agreed to co-operate with police investigating the LVF killing, a court hears.
The Ulster Unionist MLA David McNarry resigns from the Ulster Unionist assembly group.
Five South Wales Police officers receive written warnings for disobeying orders to stop pursuing a man who went on to crash into a wall and later died.
Wales prop Rhys Thomas undergoes heart surgery after being taken ill during training with the Scarlets.
Gunmen in northern Nigeria's Zamfara state kill at least 15 village traders returning from a market at night.
DR Congo's main opposition leader Etienne Tshisekedi dismisses poll results and tells his newly elected MPs not to take up their seats.
French troops will resume training Afghan soldiers on Saturday but Paris will pull out most of its troops by the end of 2013, President Nicolas Sarkozy says.
Chinese security forces have shot dead a young Tibetan in Sichuan province, campaign groups say, in what would be the third such killing this week.
The Italian firm that owns the stricken cruise ship Costa Concordia reaches an agreement on compensation with several Italian consumer groups.
Five eurozone economies, including Italy and Spain, are downgraded by rating agency Fitch, citing financial weakness during the debt crisis.
A host of international writers including several Nobel laureates issue a joint statement condemning attacks on journalists in Mexico.
The funeral is held for the first of nine confirmed victims of Wednesday's building collapse in Rio de Janeiro, as rescuers continue to search the rubble for about 20 missing people.
A suicide car bomber kills at least 32 people in a Shia district of the Iraqi capital Baghdad, with a funeral procession caught in the blast.
Amnesty International has called for an investigation into what it says is the misuse of tear gas by Bahraini security forces.
The notorious 20-year-old former fugitive known as the Barefoot Bandit is sentenced by a federal judge to six-and-a-half years in prison.
At least 11 people have been injured after an under-construction casino partially collapsed in Cincinnati, Ohio, emergency crews say.
Photos from around the world this week
24 hours of news photos: 27 January 2012
Buildings fall in city centre
Readers pictures on the theme frozen
Severe storm hits the US state of Alabama
Vintage prints of fashion photographer on show
24 hours of news pictures: 26 January
24 hours of news photos: 25 January 2012
The government has said it will not allow any more time to debate a bill on moving UK time forward by an hour, despite calls from MPs on all sides of the House for it to do so.
BBC Breakfast's Tim Muffett has had a look around the athletes' apartments in the 2012 Olympic Village.
A team of demolition workers has discovered a ghostly image while knocking down a former boarding house.
The Queen Elizabeth Hospital in Birmingham is joining with a US charity to offer accommodation on site for the relatives of injured servicemen.
An £80m Home Office programme to give police forces Blackberrys and other mobile devices has been criticised by the National Audit Office.
The late Michael Jackson has been honoured at a ceremony in Hollywood attended by his family and a host of celebrities, including Justin Bieber.
New technology is being used in Ireland to try to prevent one of the oldest crimes of fish poaching.
A memorial service for the Worcestershire and England cricketer Basil D'Oliveira has been held at Worcester Cathedral.
Many are struggling to pay their bills but the philosopher Alain De Botton reckons the British should be encouraged to think this is a good idea, by rebranding it as charity.
'Gambling' with some of the world's top investors
Why a notorious criminal has become irresistible to film-makers
How the Daily Mail stormed the US
What does Disney's staff dress code strictly forbid?
An alternative map for 2012 visitors
The US homes for ill or wounded soldiers being adopted in the UK
Time-lapse photography captures orchid coming into flower
