Business rates - calculation

The liability for Business Rates is calculated by multiplying the Rating Multiplier by the Rateable Value. Adjustments may be required under the transitional arrangements introduced by the government to mitigate the impact of a Rating Revaluation.

Rating Multiplier

This is also known as the 'rate poundage' or 'rate in the pound' and refers to the amount charged for every £1 of Rateable Value.

The value for the year commencing April 1, 2010 is 41.4 pence in the pound and if the Rateable Value of a property was, e.g. 10,000, the amount due to be paid would be £10,000 multiplied by 41.4 pence, which would equate to £4,140 (for example £10,000 x £0.414).

Rating Multiplier

The value of the multiplier is scheduled to increase by the rate of inflation every year.

Every non-domestic property is valued for rating purposes and your Business Rate Bill will show you what the rateable value of your property is. The Valuation (or Rating) List is a list showing the Rateable Value and address of every non-domestic property and all properties in this List are re-valued every five years. The current list came into effect on 1 April 2010 and reflected the hypothetical rental value of a property as it would have been on April 1, 2008.

The Rating of all properties is decided by an independent government agency, The Valuation Office Agency, Palting House, Trinity Road, Folkestone CT20 2TP. Call 01303 852900 or visit the Valuation Office Agency website.