Business rates explained

What rateable value means

All properties which aren't homes have a rateable value as a way of measuring how valuable the property is.

The rateable value is an estimate of how much yearly rent the property could earn on a particular date. The date of valuation is set by the government. The Valuation Office has carried out a revaluation and a new rating list comes into effect on 1 April 2023. The last valuation date prior to that was 1 April 2017.

Read more about the 2023 revaluation on GOV.UK

Rateable values are calculated by the Valuation Office Agency, who are part of HM Revenues and Customs.

How the multiplier works

The business rates bill for a property is calculated by multiplying the rateable value of the property by the appropriate non-domestic multiplier. There are two multipliers: the national non-domestic rating multiplier and the small business non-domestic rating multiplier. The Government sets the multipliers for each financial year.

Ratepayers who are liable for a property with a rateable value which does not exceed £50,999 will have their bills calculated using the lower small business non-domestic rating multiplier, rather than the national non-domestic rating multiplier.

For 2024/25:

• The national non-domestic multiplier is : 54.6 (0.546)
• The small business non-domestic multiplier is: 49.9p (0.499)

If your rateable value was £100,000.00 we would multiply that amount by 54.6p, so your bill for the year would be £54,600.

How the rateable value can change

The rateable value of a property may change if any physical changes are made to the building your business is in, for example if you built or demolished an extension. 

Check, Challenge and Appeal

You have the right to check, challenge and appeal your rateable value with the Valuation Office Agency if you think it's too high. You can do this even if there haven't been any changes to the property or your business.

To do this please contact the local Valuation Office Agency on 03000 501501 or through their website at www.gov.uk/correct-your-business-rates

The Valuation Office also publish useful information via their You Tube channel at www.youtube.com/user/voagovuk

For more information on business rates visit Business rates at gov.uk (opens new window) or read our  Business rates explanatory notes 24/25 (PDF, 157 KB)