Property Occupier Business Rates FAQs
What are Business Rates?
Business rates are a commercial property tax, payable by property owners and occupiers. The amount payable will depend on the “rateable value” of the property, which is broadly based on the hypothetical annual market rent value. It is payable whether the property is occupied, empty, or undergoing redevelopment.
What are Business Rates used for?
In principle, Business Rates are a contribution from businesses towards services provided by the local council such as local transport and improving public spaces, indirectly benefitting businesses in the area.
Who pays Business Rates?
The occupier of the non-domestic* property is liable for rates. If the property is empty, then the liability can lie with the owner.
*Any property not used for residential purposes such as Offices, Shops, Warehouses, Factories, Pubs.
When do you pay Business Rates?
Your local council will send you a Business Rates bill annually for the following tax year. This will usually arrive in February or March.
How much do I have to pay?
Your bill will explain how much you must pay.
How are Rates calculated?
Business rates liability are worked out based on your property’s ‘rateable value’ multiplied by the Uniform Business Rate.
What is rateable value?
The rateable value is an assessment of the annual rent the property would rent for if it were available to let on the open market at a fixed valuation date, the Antecedent Valuation Date (AVD).
The 2017 Rating List runs from 1st April 2017 to 31st March 2023 and used an AVD of 1st April 2015.
The 2023 Rating List runs from 1st April 2023 to 31st March 2026 and based on an AVD of 1st April 2021.
What is the Uniform Business Rate (UBR)?
The UBR is set every year by the government and is adjusted every year for inflation by applying the Retail Price Index.The UBR for 2022/2023 is 51.2p. Your multiplier may be different depending on your rateable value and which billing authority you belong to.